Export Tax Rebate Downgrades Forced Textile Enterprises To Speed Up Prices

In order to achieve industrial transformation and upgrading, the state has formulated the goal of eliminating backward production capacity and controlling carbon emissions, and encouraging and encouraging enterprises to innovate in science and technology. At the same time, a large number of domestic small and medium-sized textile fabrics enterprises have been producing little changed products for many years. innovate Motivation; and some new products that are already on the market are facing challenges in terms of market acceptance.

　　 Export tax rebate The reduction is a lever to promote the transformation and upgrading of the textile industry, and it will also be a heavy burden on small and medium-sized enterprises.

The reporter interviewed some exhibitors and asked them to respond to the export tax rebate reduction. The answer is the same: it is difficult to accept.

After the two sessions in 2011, the state will further spread the news of the export tax rebate reduction in the "high pollution, high energy consumption and resource" industries, which involves textile exports. In 2010, the total export volume of textiles in China amounted to US $77 billion 51 million, and the export tax rebate was about 78 billion 500 million yuan, fluctuating by one percentage point, which was related to the textile industry's profit of about 5 billion 200 million yuan. At the seventeenth China international textile fabrics and accessories (Chun Xia) fair and the Eighth China International Textile yarn (Chun Xia) exhibition held recently, the reporter visited some exhibitors and asked them to respond to the export tax rebate reduction. The answers were the same: it is difficult to accept.

　　 Order reduce

Gu Jianan of Shaoxing Frye Industrial Co., Ltd. has heard about the possible reduction of the export tax rebate. He said: "if the state wants to lower the export tax rebate rate, our enterprises will have to raise their prices."

The export tax rebate is mainly to balance the tax burden of domestic products by returning the domestic tax paid to export goods, so that domestic products can enter the international market at the cost without tax, and compete with foreign products under the same conditions, so as to enhance their competitiveness and expand export earnings. Since the implementation of the export tax rebate policy in 1985, to the end of February 2006, China's foreign exchange reserves have surpassed Japan, ranking first in the world, and surpassed Germany in 2009 to become the world's largest exporter. In 2010, China's export tax rebate amounted to 730 billion yuan, while China's trade surplus last year was US $183 billion 100 million, which means that the gap between export tax rebate and trade surplus is narrowing. Such a situation is closely related to the current inflation situation in China. For this reason, some scholars have proposed the proposal of phasing out or reducing the export tax rebate.

However, at present, the export tax rebate rate of the domestic textile industry is 13%-16%, while most textile enterprises do not exceed 5% profit margins. If the export tax rebate is lowered, the profits of the enterprises will decrease significantly.

Gu Jianan said: "nowadays, enterprises are facing serious difficulties in rising prices of raw materials. We mainly produce linen fabrics, and 80% of our raw materials are imported from abroad. Although flax consumption is now off season, prices are still rising. Foreign merchants are getting more and more difficult to accept the rising prices of domestic products, so that our products can rise in domestic prices but not in foreign trade. In this way, we must not accept foreign orders. "

Huang Guofang, marketing manager of Guangzhou Kang Textile Garments Co., Ltd., told our reporter that at present, the domestic textile consumption ability is low, compared with last year, clothing brands have fewer orders for 1/3-1/2. An important reason is the rising fabric prices. "Like us, the middle level denim last year was 15 yuan per meter, the same product this year, the price is 22 yuan per meter. Even if it has gone up so much, the profit is only 3%-5%. "

Textile exports encountered price ceilings, while domestic sales decreased year-on-year, and textile fabric enterprises were in an awkward position. Before and after the Spring Festival, some of the European and American orders came to Vietnam and other Southeast Asian countries because of the high price of Chinese textiles. At the Beijing spring yarn exhibition in 2011, an agent from Vietnam said that the price of Chinese yarn is still the lowest in the world. The labor cost of Vietnam will be lower than that of China, but the actual price of the product is very small.

Meng Yunyan, general manager of Shaoxing Bei Hong Textile Co., Ltd., said: "the price of domestic fabrics is still very affordable internationally, and foreigners can actually accept price increases. Only domestic fabrics are sold abroad, and have to go through layers of middlemen. Each middleman should ensure their bottom line. For example, I earn 10 cents per metre fabric, and middlemen earn 50 cents to 1 dollars. So the actual situation is that our enterprises want to raise prices, but middlemen do not buy them.

　 pros and cons analysis

The export tax rebate policy has been implemented for more than 20 years, and it has significant effect on boosting the volume of China's foreign trade and enhancing the export price competitiveness. The long-term implementation of this policy, in the view of some scholars, has also had some negative effects on China's economic structure.

On the one hand, China's economic dependence on foreign trade is more than 60%. The fluctuation of the world economic environment has a significant impact on domestic economic development and employment. After the international financial crisis, the coastal foreign trade processing enterprises can hardly feel the need to shut down factories, and this will make China's enterprises fall into a passive situation. On the other hand, the main profits of many export enterprises come from export tax rebates, which indicates that these enterprises are not competitive enough. For this, Huang Guofang told reporters: "indeed, many fabric enterprises rely on export tax rebates in foreign trade to survive, and take advantage of loopholes in the policy to defraud more tax rebates." The state sets up protective umbrella for the export of enterprises, which makes enterprises have no incentive to improve their own profitability and product competitiveness.

Financial subsidies affect the market competition, so that enterprises with backward production capacity can survive in the market, resulting in unreasonable allocation of resources. In March 7, 2011, during the press conference held on the "fiscal policy and related issues" held by the National People's Congress, Xie Xuren, Minister of finance, said: "in 2011, we will continue to apply the policies and measures related to export tax rebates, further support the adjustment and optimization of the structure of export products, continue to promote the export of mechanical and electrical products and products with superior characteristics. At the same time, we must strictly control the export of products such as high energy consumption and high pollution through the use of tax policies."

"Phasing out the export tax rebate policy will help curb the export of low-end products, speed up the elimination of backward production capacity, speed up the adjustment of industrial structure, and promote energy conservation and emission reduction. Moreover, the savings tax will be used in the construction of infrastructure for domestic logistics channels, and the transformation of external demand into domestic demand will be conducive to structural adjustment and scientific development. Some analysts said.

Looking at recent years' data, we can see that the state has been adjusting the foreign trade with the lever of export tax rebate according to the change of economic form. In January this year, the export tax rebate for chemical fiber products increased by two percentage points. In August 1st last year, the export rebate rate of some textiles and clothing increased from 11% to 13%. In September 2006 and July 2007, the state has cut down the export tax rebate rate for two times, and the export tax rebate has been changing. Li Rucheng, President of the National People's Congress and President of YOUNGOR group, said during the two sessions that last year, mainland enterprises had just passed through the difficulties of the international financial crisis, coupled with high pressures such as high inflation and rising prices of raw materials, and enterprises hoped that export tax rebates would continue to be stable.

In a word, if the export tax rebate is cut down, the survival of textile enterprises will be even more difficult.

　 Innovation fatigue

At the textile Innovation annual meeting held last year, Wang Wei, deputy director of the consumer goods division of the Ministry of industry and commerce, said: "the high-performance fiber and composite materials in the textile industry are an important part of the new strategic industry. The accelerated development of new industries such as new energy, environmental protection, biomedicine and other industries has created a demand space for the development of new materials and textiles for textile fibers. During the '12th Five-Year' period, we must strive to achieve new breakthroughs in key technologies in the field of high-performance fiber and textiles, improve product functionality, expand application and make it a new growth point in the textile industry. In fact, lowering or abolition of textile export tax rebates also shows that the country expects textile enterprises to enhance their competitiveness through innovation. And how high is the enthusiasm for enterprise innovation?

Huang Guanhua, executive director of Xu Rong Group, told Xinhua that Xu Rong will develop 3000 new fabrics for customers every year. Innovation is the driving force for the sustainable development of enterprises, and is also the embodiment of Xu Rong's R & D capability. But Huang Guanhua also admitted that the acceptance of new product market is not high, and product promotion still needs time to train.

At the 2011 spring yarn exhibition in Beijing, a company from Qingdao also brought new products, but the head of the company said the new product was not the main product of their exhibitors, and the sales volume would not be too high. "Research and development of new products is mainly followed by today's concept of functional fabrics hot." The person in charge said.

Huang Guofang said: "we did not bring new products, for a very simple reason, mature fabrics can ensure sales and insurance. There are 400 workers in our company. We must ensure a certain amount of work to feed these workers. The new fabrics may have large profits, but the sales volume is also limited, so the new fabric has little power.

Innovation is now the banner of large textile enterprises to show the strength of research and development, and for the textile industry belonging to labor-intensive industries, a large number of enterprises are unable to innovate, nor do they intend to innovate. A very important factor is profit. Innovation is indeed an inexhaustible motive force for the development of the industry, and how to make innovation bring benefits to enterprises quickly, obviously, in the short term, the export tax rebate is more effective.