Textile Export Tax Rebate Adjustment Puzzle

The export tax rebate will not be lowered or how much will it be reduced? Many enterprises are worried about the 109th Canton Fair which just ended yesterday. Export enterprises are generally worried about the adjustment of policies and the rising cost. They dare not take longer orders, but buyers still have doubts about the future market.

Orders for the Canton Fair have continued to rise, accounting for nearly 90%, while long single accounts for nearly 10%.

Recently, the export of textile and clothing will be cut down.

Sang Qingdong reflected that there were hardly any new buyers at this Canton Fair. From January this year, the demand for textile and clothing in the international market showed a weakening trend. Because the global economy has not yet fully recovered, European and American customers have not been very active in purchasing, and exports are expected to slow down in the second half of the year.

In view of the bad situation, enterprises dare not raise prices at this Canton Fair.

Zhong Haosen, assistant general manager of Guangdong textiles import and export Limited by Share Ltd, is also pessimistic about this year's export prospects.

He believes that even if export rebates do not fall, the export orders for textile and clothing have begun to stagnant. As the price increases steadily along with exchange rate fluctuations and manufacturing costs, many customers are scared away. The worst situation in the second half of the year is expected to be 50%.

The textile industry is worried about getting into trouble again.

Due to the reduction of export tax rebate, the appreciation of RMB, the rise of costs and the shrinking of international demand, the growth rate of China's textile and clothing exports in 2008 has obviously declined.

To this end, the state has introduced a number of policies in six months since August 2008, including the 4 increase in the export tax rebate rate of textile and clothing, which has been raised to 16% from the original 11%.

Under the complicated and changeable export situation, most enterprises are expecting the stability of national policies.

Liu Jianjun, spokesman for the Canton Fair, also said at yesterday's press conference that enterprises are calling for stable export tax rebates under the circumstances of various factors that encroach on profits.

"Textile enterprises oppose the export tax rebate reduction very strongly, and hope that the state will not make any adjustment at the moment, which is mainly determined by the state's attitude towards exports, and the state tends to encourage imports. At present, the export attitude is not clear. It may be because of too much foreign exchange reserves, not paying attention to exports or even suppressing exports."

Zhong Haosen said.

Zhou Shijian, a business commentary expert of the Ministry of Commerce yesterday, was accepting our reporter.

"The export tax rebate adjustment is basically carried out before the Canton Fair, allowing enterprises to prepare for orders, and the eve of this Canton Fair does not see any policy movement, which may mean that the period will not be adjusted."

Lin Yan, manager of cotton textile department of Hangzhou light industry craft textiles import and Export Co., Ltd.