Textile Exports Are Facing Life And Death &Nbsp; Representatives Of The Two Sessions Called For Lighten The Industry Tax Burden.

Hu Yali, who had been in Shanghai for 5 days to take part in the East China Import and Export Fair (hereinafter referred to as "China Fair"), was somewhat disappointed. "The number of cards received can be counted by 10 fingers. Fewer people last year, basically no one this year." Hu Yali said.

Hu Yali is assistant to general manager of Ningbo Vico industry and Trade Co., Ltd. As the first import and Export Commodities Fair in China, the 5 day of the Chinese fair ended in Shanghai. The China Trade Fair mainly sells light textile products such as textiles, and has always been the "vane" of the foreign trade industry.

Recently, China Textile Import and Export Chamber of Commerce and China Federation of textile industries The report released indicates that textile exports may show negative growth in the first half of this year. Textile chamber of Commerce said, "it is expected that in the first half of 2012, China's textile and garment export demand will be less and the competition pressure will be more prominent. The number of industrial exports will be low or negative growth in the first half of the year"; the Federation of textile industry said, "last year, the number of textile and garment exports in China declined sharply, up only 0.5% over the same period last year. It is expected that export demand will remain insufficient in the first half of this year, the industry pressure will be more prominent, and the number of industrial exports will be negative or negative."

"To tell you the truth, this year will be a critical period for us to die and die." Qian Yang, business manager of Jiangsu international textile and garment department, said. When he talked with reporters during the autumn fair last autumn, he joked that if next year's Autumn Fair could see their old faces, it would mean that they had survived. If they could not see it, they might have withdrawn from the industry.

Qian Yang did not take part in the China Fair. Last year, several trade fairs that he participated in last year paid a lot of booth fees. But he was frustrated by the fact that he did not accept the grain. Now he will consider carefully before going to the fair. For Qian Yang, last year's gloomy business did not get better this year, but it was even worse. At present, most of the orders they have made are received after last autumn, and they can be maintained until the end of March.

His company is a professional trading company, which is more difficult for them than export oriented factories. In order to get orders, many factories compete maliciously on quotations, resulting in no profit or even loss. Qian Yang said he said that 70% of the small processing plants that had come to contact were bankrupt or abandoned. Data from the Federation of textile industry also show that some industrial clusters in the Pearl River Delta region Small and medium sized textile enterprises Export processing enterprises operating rate is only about 40%.

The textile import and Export Chamber of Commerce reports that external demand is unstable, raw material prices are volatile, labor costs are rising, and financing is not smooth, and other factors remain the main problems facing export oriented textile enterprises. The textile industry association said that the domestic cotton market is in a state of confusion. If the reserve cotton is sold with "cost plus profit", it will drive domestic cotton prices up, and the domestic and international cotton prices will continue to widen, and the international competitiveness of textile enterprises will be further weakened.

In another bad news, India decided to ban cotton exports recently, which is a blow for Chinese textile enterprises. In recent years, India has become an opponent of China and other textile exporting countries in the international market, especially in terms of low-end textiles. India relies on low cost of raw materials and labor cost advantages, constantly nibbling the share of China's international market. India's move is also to improve the competitiveness of the end textiles in the international market.

In addition, the textile import and export chamber also said that Textile enterprises The increase in labor costs is obvious. Sampling shows that more than 80% of the enterprises are short of employment, and wages increase by more than 15%. Recruitment difficulties, unable to retain and improve the living treatment of workers, etc., have made the labor cost of enterprises showing a rigid upward trend. Small and medium-sized textile enterprises still face problems such as poor financing, high financing cost and unstable order quantity. Especially for export processing enterprises, when the RMB appreciation expectation is still in existence, the ability to resist risks is weak. Once these enterprises are shut down too much, they will directly affect the industry and social stability.

Zhao Linzhong, chairman of the National People's Congress and chairman of the board of directors of Fu run Holdings Group, proposed to reduce the tax burden of the textile industry from three aspects. First, it suggested that the textile industry should be included in the pilot area of the State Administration of Taxation on the verification and deduction of the value-added tax of agricultural products. The deduction rate of the agricultural product input tax from the current 13% to the applicable tax rate of the goods sold by the taxpayers at the time of re sale, that is, 17%; two, it is suggested that the artificial wages of the textile industry be allowed to be deducted when the value added tax is vindicated; the three is that the textile industry's R & D investment and brand marketing expenses should be included in the scope of the VAT input tax, or the vat of some of the dominant innovative enterprises and brand enterprises will be added to the "value-added tax". Faced with the grim situation, many representatives of the textile industry from the two sessions also made suggestions.