Policy Response To Boost Export Share Of Textile Services

Recently, the Ministry of Finance and the State Administration of Taxation issued the notice on raising the export tax rebate rate of textile and electronic information products (fiscal and taxation [2009]43), referring to the export tax rebate rate of textile and clothing from 2009-4-1 to 16%.

Comment: a wide range of policies is being raised, and the policy response rate is faster than expected.

From the point of view of the announced adjustment, the range of textile raw materials such as silk spinning, wool spinning, cotton spinning and linen spinning has been increased by more than 95% of the industry's export volume.

The international competitiveness of the industry is still in the lead in the world, and the policy is orderly, and the export rebate rate and the exchange rate stability will continue to increase, so as to further speed up China's market share.

In the recession of the major developed countries, China's textile industry has shown strong comprehensive supporting capacity, the market share and international competitiveness continue to improve; meanwhile, the global inflation anticipation reinduces the industry's concern about the passive appreciation of the RMB medium and long term real exchange rate. The rapid adjustment of this policy strengthens the protection of the policy to the industry and is conducive to enhancing the industry's confidence in the evolution of the medium and long term policies.

In January 2009, the United States imported $6 billion 990 million of global textile and apparel, down 8.46% from the same period last year, and imports from China increased by 2.59% over the same period last year. China's market share increased by 3 points to 38.05%, which is in line with our expectations.

The cumulative effect of the multiple export tax rebate policy will gradually appear, the export leading companies with the super matching orders, share share increase and industry rebound, maintain the "recommended" rating of "URI" and "Rebecca", "prudently recommended" rating of Dayang creation and Weixing shares. Jin Fei Da, YOUNGOR, Lu Tai A and Shandong Ruyi "neutral" rating have increased the export tax rebate for the 4 time since August 2008. The industry reshuffle for 2005-2008 years has strengthened the international leading position and market share of the export leading companies that are sticking to the foreign market, and the orders in this global demand are obvious to the leading edge.

We believe that the export leader set up by the 2Q2009 super matching order will enjoy the double advantages of increasing export share and the industry's recovery and maintaining the "recommended" rating of VSI.

Editor in chief: Xu Qiyun