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    Textile Workers Adopt Layoffs For Self-Protection.

    2008/10/23 0:00:00 57

    Following the lifting of the export tax rebate rate for clothing and textiles in August 1st, China raised the export tax rebate rate of clothing and textiles 1% for the second time this month. The policy orientation of "maintaining growth" was once again highlighted, and the textile sector rose yesterday.

    However, in the view of many business owners, the passive situation in the whole industry has not been fundamentally reversed because they are faced with a "severe winter" which has never been encountered before.

        金融海嘯卷走中國訂單

    During the interview, Ding Rongcheng, chairman of the big Sen clothing group, was low in tone.

    As a general manager of clothing export enterprises with an annual output value of tens of millions of yuan, in the face of a sharp decrease of 30% of orders and storehouses pile up higher inventory, Ding Rongcheng felt the smell of "winter".

    The financial tsunami on the other side of the ocean has taken away too many orders. The situation of dsen clothing is only a microcosm of the survival state of China's clothing and textile enterprises.

    Recently, the largest printing and dyeing enterprise in Shaoxing, Jiang long holding group, came to the news of bankruptcy and liquidation. Its president and wife had disappeared.

    Previously, many large textile enterprises such as Shandong cherry blossom, Zhejiang leap, Shandong galaxy and so on were closed down.

        紡織服裝商裁員自保

    "With the spread of the US economic crisis, the export of China's garment and textile products has been shrinking from the European and American markets to the global market."

    An expert in clothing and textile industry said.

    Struggling textile companies have to "cut corners".

    The chief executive of a garment export enterprise in Zhejiang told reporters that layoffs are unavoidable. "At present, it is mainly to reduce some non productive personnel such as administration and management."

    The head of a clothing and textile export enterprise with an annual output value of 150 million yuan told reporters that since the two quarter, the company began to reduce expenditure to protect itself, and some small businesses and many traders around Fujian have already closed down.

        8月退稅效果尚未顯現

    The export rebate rate was raised twice in three months, and the "warm air" policy eased some psychological pressure on textile enterprises.

    A manufacturer told reporters that although the increase was only one percentage point, at least 1% of total trade exports could be directly plated into profits.

    Analysts pointed out that the impact of the increase in the export tax rebate rate on the industry is direct and positive, and may bring valuable breathing opportunities to small and medium-sized export enterprises close to collapse.

    However, it is pointed out that once the rate of tax rebate is raised, foreign businessmen will inevitably reduce the price of products and will not fundamentally change the difficult situation of clothing textile enterprises.

    Textile and garment export figures released by the General Administration of Customs show that in September, exports of textiles and clothing decreased by nearly US $600 million compared with August, and export growth is still in the doldrums.

    The export tax rebate rate raised in August 1st did not bring a real turning point for the export of textile and garment industry.


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