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NPC Deputies Called For Tax Cuts: Chinese Textile Companies Need Help

2012/3/6 8:59:00 31

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Textile Policy Support For People'S Congress

"China's

textile industry

It has reached the stage of the rescue, otherwise it will go bankrupt. "Wang Linxiang, chairman of the National People's Congress and chairman of the Inner Mongolia Erdos cashmere products Limited by Share Ltd, was somewhat excited when interviewed 5," he repeatedly stressed that "the corporate tax burden is too heavy."

Ordos is a famous textile and clothing brand in China. Despite this, Wang Linxiang still complains that clothes can't get into many big stores because of many cost problems.

Pointing to the clothes he wore, he said, "the retail price in the market is four times higher than the factory price, and the cost of circulation is too high."

Apart from the sales problem, what makes him most troublesome is that the profits of textile enterprises in China are very few. "If the government fails to rescue, many Chinese textile enterprises will be pferred to Southeast Asia".

"In Kampuchea, wages are only more than 20 dollars, or more than one hundred yuan. In our case, wages have reached three thousand yuan, and they have to pay various kinds of insurance. The enterprises are already overburdened."

Wang Linxiang said.

Wang Linxiang's experience is only a model of China's textile enterprises.

Textile enterprises

Zhejiang Fu run holding group is also deeply troubled by the "heavy tax burden".

Zhao Linzhong, chairman of the National People's Congress and chairman of the board of directors of Zhejiang fortune run group, said that because of the rising labor costs, the company's current profit is only 2%.

At present, China has become the country with the largest number of anti-dumping investigations and countervailing investigations, and textile enterprises bear the brunt.

According to the statistics of China's National Bureau of statistics, in 2011, there were more than 10 garment enterprises in China, of which 1.04 were over scale enterprises, accounting for 90% of the total number of SMEs.

Chinese textile enterprises are an important carrier of "made in China" and are deeply influenced by external markets.

Because of the economic downturn, the European and American countries have begun to choose China's processing enterprises carefully while strengthening their industries. Many Chinese textile enterprises have been cut down or even gone bankrupt.

Faced with the predicament of enterprises, Wang Linxiang and Zhao Linzhong coincide, and they have submitted to the National People's Congress this time about China's textile industry.

Corporate tax cuts

In their view, the tax burden is reduced, and enterprises can carry out technological research and development and industrial upgrading so as to get out of the predicament.