Hongkong'S Manufacturing Retailing Industry Is Facing A Downward Trend In The Export Tax Rebate Rate.

Recently, the news that the central government intends to reduce the export tax rebate rate and some commodity import and excise taxes is crazy in the market. The lowering of the two-way tax rate has made Hong Kong enterprises worried about the decline of the international competitiveness of the export manufacturing industry and worried that the retail industry in Hong Kong has been hit hard.

A manufacturing industry in Guangdong and Hong Kong retail Is the closure of the industry approaching again? Should the new deal be formulated, should we consider the negative effects of the rise in labor prices on the southeastern coastal provinces? Should we take into account the embarrassing reality of the "world factory" not getting rich in the "world factory" behind the orders? A series of doubts has revealed the difficult choice of China's import and export strategy.

The export tax rebate rate will be downregulated experts: phased fine-tuning

There is no official response to the rumour that the export tax rebate rate will be lowered. One view is that it is quite appropriate to reduce the export rebate rate at this time, for three reasons. First, the "two high and one capital" enterprises consume a lot of energy and resources, export their products to foreign countries, but they keep pollution at home, which makes export products produce a favorable balance of trade while producing favorable balance of trade. The export tax rebate policy should also be one of the policy tools to accelerate the spanformation of economic development mode. Secondly, reducing the export tax rebate rate can raise the cost pressure of "two high and one capital" enterprises, and then promote the spanformation and upgrading of technology. At present, the export tax rebate is like some enterprises' "umbrella". Under its asylum, many enterprises lack innovative power. Thirdly, it helps to control inflation. China has raised the export tax rebate rate for 7 consecutive times since August 2008. In 2009, the mainland handled 648 billion 700 million yuan of export tax rebates, and the amount increased to 730 billion yuan in 2010. The increase of export rebate rate means a corresponding reduction in revenue. In order to cope with the huge investment plan, the central bank has to increase its currency and credit, which will inevitably cause inflation.

Export policy has not changed.

However, many academics believe that this is not the right time to change the export tax rebate rate. foreign economic trade Yang Liqiang, director of the University's China foreign trade and Economic Research Office, pointed out that compared with previous years, the trend of international inflation is fading, and the economic recovery in Europe and the United States is slow. In some locality, especially in the Middle East, North Africa and other energy producing areas and trade routes, the political turmoil in key regions, the uncertainties and risks accumulated in the world economy are gradually emerging as a result of the Japanese earthquake and nuclear disaster. Against this background, China's foreign trade growth still needs a period of stability and consolidation. The overall keynote of the relevant policies should be phased fine-tuning rather than "tone sandhi" on the basis of maintaining the continuity of policies.

According to a recent survey conducted by the Ministry of Commerce in Guangdong, Zhejiang, Jiangsu, Liaoning, Sichuan, Hubei and other 6 major trade provinces, about half of these enterprises have lost profits, and some enterprises have increased or even failed. At the end of 4, Yuan Xiaoming, director of the financial affairs department of the Ministry of Commerce, revealed that in 2010, the average profit margin of China's export enterprises was 1.47%, lower than the average profit level of industrial enterprises, and the export profit margin of enterprises in 2011 decreased to 1.44% from 1 to February. The industry pointed out that under the present circumstances, the rate of tax rebate reduction for export commodities should not be too large, should be controlled within 1 to 2 percentage points in the year, and try to maintain a relatively stable export environment. Otherwise, a wave of closure of Hong Kong and Taiwan export enterprises is likely to happen again.

Yang Liqiang said: "judging from the recent adjustment of the export tax rebate policy, the export tax rebate adjustment is mainly aimed at controlling the export of" high energy consumption and high pollution "products, in other words, from the perspective of" adjustment structure ". Therefore, even if the export tax rebate has been adjusted, it will not have a big impact on foreign trade export, so the industry should not worry too much. "

Export tax rebates become Hong Kong enterprises' "lifting money" tax reform storm or expedited closure of the tide.

The Guangzhou Trade Fair, known as the "foreign trade vane", has been on the news since the middle of April. It has only 109 sessions. Canton Fair (1) on the opening day, the number of foreign purchasing newspapers broke through the 40 thousand National Congress for the first time, a 16.78% increase over the previous session. Some commentators believe that the popularity of the Canton Fair indicates that the sprouting of the recovery of foreign trade is growing rapidly. However, the thriving situation is hard to drive away the haze that is quietly accumulating. Rumor has it that the central government intends to re adjust the export tax rebate rate in July, which involves the consumption of high energy consumption, such as lead, zinc, aluminum and copper in clothing and textile and non-ferrous metals, and the related industries whose products are scattered and scattered. The decline is as high as 5%. The crazy spread of the "bad news" has made many manufacturers of Pearl River Delta export uneasy.

"If the export tax rebate of textile industry really dropped by 5% in July, then we would be hard to collect. In May 1st, Chen Shangtian, the foreign trade manager of Sanshui broad Thai Textile Co., Ltd., who participated in the Canton Fair (three issue), raised the rumor that the export tax rebate had to be adjusted, and lamented, "for the garment factories in the textile industry, the more severe winter than the financial tsunami is coming". "Chen Shangtian,"

"5% reduction is nothing less than a disaster."

Mr. Tao, another Dongguan clothing exporters, also sighed for a long time. His company mainly produces jeans, and the price of medium quality denim fabrics has risen from 15 yuan per meter last year to the current 23 yuan / meter, or more than 30%. Over the same period, the export quotations for customers increased by only 15%, and this part of the increase was eroded by the appreciation of the renminbi.

"I have a shipment to be issued in May 1st. When the order was signed in January this year, the central parity price of the RMB against the US dollar was about 6.61, but by April 29th it had dropped to 6.499, equivalent to the product of 10 million US dollars per export. Under multiple pressures, the export tax refund is really the "hanging money" of the enterprise. Mr. Tao told reporters that in 2010, China's export tax refund reached 730 billion yuan. Under only textiles, export tax rebates were about 78 billion 500 million yuan. One percentage point floating up and down was directly related to the profit of about 5 billion 200 million yuan in the textile industry, while the reduction of 5% was no difference in making the industry a disaster. He urged the government to maintain a stable export tax rebate policy through this newspaper, and not to let the international market share of China's export enterprises strenuous to hand over to India, Vietnam and other countries. Manufacturers of traditional labour intensive products such as gifts, toys, clocks and hardware are also worried about this rumor. Ye Chunrong, President of the Dongguan Association of Taiwanese businessmen, recently announced that the profits of export oriented enterprises have been very low. The average gross profit margin of the electronic manufacturing service industry has dropped to less than 3% from 6.2% in 2006. The toy industry still has a profit of up to 30% in 1990, and now it is basically unprofitable. At this point, the reduction or cancellation of the export tax rebate rate may become the last straw that has crushed many export enterprises.

The "export promotion" policy was launched to introduce the import tax reduction plan, which was supported by {page_break}.

A piece of news that the export tax rebate rate will soon be lowered is that a package of "export promotion" policies are expected to be introduced in the first half of this year. The planned plans include reducing import duties and consumption tax on milk and cosmetics, and reducing or cancelling import and excise taxes on gold and jewellery in the long run. Contrary to the strong opposition to the reduction of the export rebate rate, the import tariff reduction plan has received almost one-sided support in the mainland business and academia, mainly because the spread of high-grade goods in China and abroad has led to the outflow of purchasing power and the loss of tax revenue. According to Goldman Sachs, consumption of luxury goods in China amounted to US $6 billion 500 million in 2010, of which more than 40% of luxury goods were purchased from abroad. At the same time, the market scale of Chinese overseas purchasing in 2010 was as high as 12 billion yuan, and some scholars predict that by 2012, the scale of overseas purchasing spanactions will reach 48 billion yuan, and the amount of tax loss will be astonishing. As the preferred place for mainland residents to purchase foreign goods, the import tariff of milk powder, cosmetics and luxury goods in the mainland is bound to impact on Hong Kong's retail industry. However, the Hong Kong people who had been very anxious for this time were confident. Zhao Xiaobin, director of the China development international research center of University of Hong Kong, told the newspaper that the mainland also levies value-added tax and excise tax on luxury goods in addition to the import tax. Even if the tax cuts can not be implemented in Hong Kong as a "zero tariff" in the future, plus the exchange rate between the renminbi and the Hong Kong dollar, the retail industry in Hong Kong still has a price advantage. More importantly, tax cuts can not eliminate the long-standing drawbacks of other regulatory regimes, such as the regulation of circulation links and certification links, which are still not as good as those of Hongkong. Therefore, the mainland tax reduction will not have a greater impact on Hongkong. Zhu Jitao, executive director of Prince jewellery and timepieces, also believes that the adjustment of import tariffs in the mainland will only have a slight effect on the retail industry in Hong Kong, as the main reason for the mainland's shopping in Hong Kong is quality assurance. Will the fact be as optimistic as the authority expects? The answer is not known. But Hong Kong people should not overdo it.

In April 20th, the Hainan Islands tax-free scheme was formally implemented, and consumption on the first day was far beyond official expectations. It is worth noting that the establishment of duty-free shops in Hainan this year will bring luxury consumption to the mainland, which is probably only the first step in the central planning. There are reports that similar tax free zones are also planned for many cities in Shanghai, Zhejiang and Guangdong. If the tax exemption Scheme continues to expand, the influence on Hongkong's retail industry can never be underestimated.

Release policy signals: Mainland's road to restart spanformation

In fact, both the import tax rate and the adjustment of export tax rates are releasing a policy signal, that is, the road of spanformation that the mainland has shelved because of the financial crisis is being restarted. The time when the pattern of "emphasizing foreign trade and domestic trade" has been overturned for many years has really come. How to adapt to the tide of policy and find the right position in the new pattern is a problem that Hong Kong and Taiwan enterprises need to face. The path of rebirth has also been clear in the past, that is, spanformation and upgrading, and technology and brand competitiveness instead of cost competitiveness. But the key is that it is easier said than done.

Manufacturing industry: Transformation of SMEs and assistance from the government of Hebei Province

"We know that independent innovation is very important, but the scale of the enterprise is too small, and there is no manpower and material resources. Officials shouted slogans. The support funds and policies are not enough for SMEs. We are in a dilemma. The sales manager of a set-top box manufacturer and exporters told a newspaper reporter that the cost of raw materials produced by the company is now about $15, but the selling price is only $17. The profit of "two dollars" includes manpower, management costs and export tax rebates. It can be said that the export tax refund is the only profit left by the enterprise. "Shenzhen" Small profits make enterprises have to "run with death" for a long time, and have no time to invest in R & D; moreover, although R & D has helped to improve product profits, the poor patent protection environment in the mainland has greatly reduced the research and development effect, causing many enterprises to worry about the risk of independent innovation.

"Our company launched a new set-top box last year, and the initial benefits are really good. But the market soon filled with the same type of products. In less than 3 months, the selling price dropped from less than $30 to less than $20. Most Chinese SMEs do not apply for R & D capability of international patents, and there is no real support from government policy to capital, which is actually a secret road. The market participants pointed out to reporters that China's economy is undergoing a painful spanformation, but this pain is almost entirely borne by the small and medium-sized enterprises in the coastal areas. The government should stir up the backbone of economic spanformation and really tilt to the small and medium-sized enterprises in terms of policy elements, capital elements, technological elements and talent elements instead of carrying out the "forced" attitude at all times.

Retail industry: the domestic market should be expanded as soon as possible.

Under the impact of rising exchange rate, raw material prices and labor costs, many export enterprises in the PRD chose to raise prices. A Dongguan port trader who participated in the Canton Fair told reporters that under the pressure of cost, the price of hardware and light industrial products produced by the company increased by 20% on average in the current Canton Fair. The result is that some orders have shifted to India, Pakistan and other countries. Now, he has begun to consider turning into the domestic market. At the Canton Fair, the manager of a Liu Xing export enterprise in Zhuhai told reporters that the company had tasted a better sweetener than the export market in the past year. "The same baby trolley can sell 1600 yuan in the mainland, and exports only 90 dollars. Although the spanformation of domestic sales requires huge market development and marketing costs, in the long run, domestic sales will surely be a trend. In addition, in the face of the trend of lowering the import and export tax rate in the mainland, experts interviewed by this newspaper also suggested that our retail industry should make preparations for the "home return card" to join the central government in order to divide the huge domestic demand market. It is reported that the first China's domestic trade development plan, which is currently in the stage of establishment and perfection, has proposed that the total volume of retail sales of consumer goods will be doubled in 2015 to more than 30 trillion yuan, which will increase by more than 3 trillion yuan per annum by the year 2010.