Potential Of Domestic Textile Enterprises In Domestic Market Targeting Rural Areas

Tens of billions of dollars are subsidized to textiles, just as home appliances go to the countryside, and the effect may be more direct and obvious.

Suffering from crisis

Recently, the textile industry's adjustment and revitalization plan has passed smoothly.

The rate increased from 14% to 15%.

It will increase the net profit of the textile industry by about 5 billion 700 million yuan.

However, under the current severe situation, textile and garment export enterprises still call for more support.

It is not surprising that the general expectation is 2 percentage points or even 17% full tax rebates. The current rate is lower than expected. But Qin Gang, director of Beijiang Textile Co., Ltd., told reporters that the textile industry is still excited about the news.

Qin Gang said that the export tax rebate raised by 1 points would probably reduce the cost of 0.7%-0.8%, and the low price of raw materials such as cotton would help to survive the severe winter of export.

Qin Gang said he was labelling "labor-intensive" labels.

The industry has been regarded as the object of pformation and upgrading in recent years, and has been guided to move northward to the West. Nowadays, under the severe employment situation, the attitude of the state to the labor-intensive industry has changed significantly.

The two time raised the export tax rebate rate, but it only showed a short-term stimulation effect. The 1 percentage point increase was generally considered to be limited.

Mr. Ma, a senior industry analyst, said the impact of the financial turmoil has not been completely released due to the single cycle, the first half of 2009.

The trend of deterioration is likely to further expand, and the rate of slowdown may be beyond imagination.

It is estimated that China's textile and clothing exports increased by less than 5% in 2008, and this year there may be a negative growth of 5%-10%.

Qin Gang told reporters that the current clothing orders to Vietnam, Egypt, Bangladesh and other phenomena more and more, textile fabric orders due to the entire production chain technology requirements are not so fast, but Qin Gang said, if there is no greater support policy, within 35 years, once India or Bangladesh textile industry forming industrial agglomeration potential, China wants to grab the market will be more difficult.

Besides, Wang Qian, editor in chief of the first textile network, believes that another key move is to support a large number of large and medium-sized enterprises, focusing on solving the problem of enterprise funds and increasing the support of fiscal and taxation policies.

He said that from the end of 2007, the funding problem has become the most serious problem in the textile and garment industry.

At present, it is important to change the irrational industrial policy orientation, establish a long-term mechanism conducive to the development of enterprises, and give more policy support to the development of the textile industry, including tax reduction, interest discount and capital injection.

And so on, giving more financing support to the textile enterprises with promising prospects.

Wang said that raising the export tax rebate and other negative burdens policy only allowed export enterprises to have more room for reduction, and could not create external demand, and most of the profits from tax rebates were likely to be subsidized to foreign customers.

Wang said that the benefits of stimulating consumption can be divided into two aspects: on the one hand, it can solve our excess capacity; on the other hand, it can also pry the domestic market, and nearly 10 billion export tax rebates. If it is used to distribute consumer coupons, although it is not a cure for the economic downturn, its effect is obviously better than expanding investment and raising export tax rebates.

He said that in 2008, Chinese urban dwellers spent more than 1000 yuan on clothing and less than 200 yuan in rural areas, which was roughly 1/5 of that in urban areas.

The largest potential market for textiles and clothing is in the countryside.

If tens of billions of dollars used to subsidize the export tax rebate are subsidized to textiles, as the appliances go to the countryside, the effect may be more direct and obvious.