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    How Does The Textile Industry Get Out Of The Dilemma Of Life And Death?

    2012/3/19 11:47:00 26

    Order Difficulties In Textile Industry

    How hard is it to run a business? How difficult is it to run a business? Although everyone knows a little about media coverage, with reporters entering the field of textile research, we still feel heavy about the real existence of enterprises.


    Whether for China's economy or for Chinese enterprises, they are now facing the joint point of development.

    As the global economic growth slows down, the Chinese economy is under greater downward pressure.

    From close quarters, what is the support of China's economic development and how to cope with the challenges of global competition?

    A series of development and adjustment issues are waiting for us to answer.

    The basic point to answer these questions is to solve the problem of survival and vitality of economic enterprises.

    This report reveals that the problems faced by textile enterprises such as expensive financing, high cost and difficult recruitment are also varying degrees in other industries. Although they are not new problems, they are a matter of life and death.

    If these problems fail to arouse the attention of relevant departments and solve them, it will draw a big question mark about how to tide over the difficulties of the current development.


    Fortunately, this spring has conveyed many exciting information. From the central economic work conference to the just concluded two sessions, how to support the development of the real economy has become a major topic of concern and discussion at the top and bottom.

    Of course, paying attention and discussion is not enough. We expect that the concern of the whole society can be quickly pformed into a spring rain for moistening enterprises, so that Chinese enterprises can root deeper and grow more in bad living environment.


      

    Editor


    1. the weight of cotton


    Imports are subject to quota restrictions.

    Impose high sliding duties

    So that enterprises lose at the starting line.


    Although cotton prices fell steadily in the second half of last year, Zhao Yan, deputy general manager of Zou Pinghongcheng Home Textiles Co. Ltd., was not happy.

    Cotton prices fell by half last year, while corporate profits shrank by 2/3, and some orders were flowing to Southeast Asia because of cotton prices.

    "The abnormal fluctuation of cotton prices may have passed, but the reality of cotton price inversion at home and abroad has existed for a long time. We have been paying high costs for raw materials."


    According to Sun Huaibin, spokesman of China Textile Industry Federation, last year, the export volume and industry profits of China's textile industry both dropped sharply. Cotton prices were ups and downs, which resulted in high cost and difficult orders.

    "Over the past year, cotton textile enterprises above Designated Size have lost more than 10% of their losses, and their losses have doubled as compared with the previous year."


    On the face of it, the cotton prices of ups and downs are hitting China's textile industry, which has been traced back to the source. The industry has long been troubled by the cotton import quota system, the Levy of high sliding tax, the introduction of output tax, the high tax and low Deduction Policy, and so on, resulting in enterprises unable to participate in international competition fairly.


    According to the WTO agreement, China will import 894 thousand tons of cotton per year and 1% preferential duty, and 5% to 40% of the imported cotton imported from quotas.

    The Levy of sliding tax is equivalent to setting the bottom line for the import cotton price. The purpose is to reduce the impact of imported cotton on domestic cotton market and ensure the cotton farmers' income.

    However, there is a gap of nearly 3 million tons between China's cotton output and textile industry demand, which means that no matter what the cotton price is, there are more than 2 million tons of cotton rigid demand imported through paying high sliding tax.


    Therefore, when the international cotton price is higher than the domestic level, the imported cotton will be "expensive and expensive"; when the international cotton price is lower than the domestic price, the import cotton price will be "changed from cheap to expensive".

    "Last year, in the most extreme cases, China's textile industry took part in international competition with cotton costs higher than its competitors by 7128 yuan per ton."

    Sun Ruizhe, vice president of China Textile Industry Federation, said.


    Quotas and sliding tax impedes the use of market means for resource allocation, resulting in the high cost of Chinese enterprises.

    Liu Zibin, general manager of Lu Tai textile Limited by Share Ltd, for example, at present, 18000 yuan per ton of Australian cotton and 16000 yuan of cotton in India, but enterprises can not import by themselves, while China's new cotton needs 21400 yuan to get the same quality cotton.

    "The price of labor and energy in Southeast Asia and other countries is lower than that in China. Now the domestic cotton price is still four thousand or five thousand yuan higher than that in foreign countries. This is like taking part in the 100 meter race. Chinese enterprises are placed at 50 meters after the starting line. How much later advantage will it have to win?"


    The abolition of quota system and sliding tax has become the consensus of the industry.

    Liu Yuexing, chairman of happy home textile Co., Ltd. suggested that the high sliding tax should be abolished so that Chinese enterprises could freely use overseas procurement to stabilize the prices of raw materials, while preventing Pakistan, India and other countries from raising their prices in the formulation of the cotton export policy, so as to gain advantages for the export of their textiles.

    "We sincerely hope that China's textile industry will encounter unfair competition if it does not go abroad."


    The industry believes that the abolition of the sliding tax at the same time, it is entirely possible to adjust the subsidy policy to protect the interests of cotton farmers.

    "Protection of agriculture should not be at the expense of the international competitiveness of industry.

    If the textile enterprises fail, then what should cotton growers and about 3000000 cotton textile workers do? "Liu Zibin analyzed that cotton farmers' cotton had been sold as early as 1 and February each year, and the quota was issued in 4 and May. In fact, the sliding tax is actually benefited by middlemen and cotton processing enterprises in the circulation field. It is better to make reference to China's grain policy and the US cotton planting policy, so as to make the farmers and enterprises enjoy real benefits.


      

    2. financing is expensive.


      

    Bank loans are bundled with various conditions, high costs and even direct pursuit of private usury.


    Since last year, "

    Financing expensive

    It has also become a mountain in the top of the textile industry.

    In the survey of more than 500 enterprises in China's Textile Industry Federation Statistics Center, nearly 40% enterprises have more than 10 percentage points of financing interest rate than the bank benchmark interest rate. Textile industry lending rates such as Shandong generally rise by more than 30%, and quite a lot of enterprises are forced to accept the acceptance bill business.


    Some enterprises took the loan of 10 million yuan as an example to give the reporter an account.


    First, the benchmark lending rate for one to three years is 6.65%, then up to 50%, and the interest rate is 997 thousand and 500 yuan.


    Secondly, the bank requires that the loan be made full acceptance in 6 months, which means that the enterprise will take the draft to the supplier, and the supplier can only get the money in 6 months.

    If you don't want to wait for 6 months, the company needs to pay the discount interest.

    The discount interest rate in 2011 was as high as 14%, increasing the interest rate by 700 thousand yuan.


    Finally, enterprises need to go to the Guarantee Corporation designated by the bank to guarantee the minimum 3% guarantee cost.

    Therefore, the real interest rate of a 10 million yuan loan is as high as 27%.

    In addition, banks sometimes use the guarantee of loan to deposit ratio as the reason, requiring enterprises to deposit a certain amount of margin.


    "In order to pform and upgrade, I have subsidized all the money earned by export processing to independent brands."

    Shandong Hai Si Bao Garments Co., Ltd. has been pushing its own brand ASPOP women's clothing for two years. The brand is now stationed in high-end department stores in Shandong, Zhejiang and other places, and sales are booming.

    But the bank loans for R & D and construction channels are not only difficult to approve, but also cost nearly 30% of the financing cost, so that Ma Xueqiang, chairman of the board of directors, is at a loss.

    "The interest rate of banks is so high that it is far beyond the profit margin of enterprises. Is this not contrary to the policy of the state to encourage independent innovation?"


    Not only medium-sized enterprises such as Hester, but also large enterprises like Lanyan group, are deeply troubled by the difficulty of financing. The banking industry, which should serve the real economy, has become a stumbling block to the development of the real economy.

    "To get loans, we must accept the conditions of acceptance, discount and so on. At the end of the year, the bank interest rate is as high as 30%, which has caught up with the private usury, and it has made a great impact on our real economy."

    Jiang Ming, President of LAN Yan group, said that last year, banks were affected by the ratio of deposit to loan. In order to increase the deposit requirement, the company accepted full acceptance. This alone allowed the company to pay more than about 40000000 yuan discount interest in 2010.

    "If banks are going on like this, they are going to waste their lives. If the real economy fails, how can banks survive?"


    Cui Qi, general manager of Dongfang carpet Group, also laughed at himself. He was too embarrassed to report to the bank manager how much money he had made when he was paying the loan, because the profits were still paid to the bank.

    "This year, the state has introduced policies to support small and micro enterprises, like companies on our scale, but they have no support at all.

    Big rivers and small rivers full, so difficult for us, where do small and micro enterprises support business? "


    In the research of journalists, entrepreneurs shouted at one time. At present, the bank guarantees conditions are high and the cost of financing is high. The "most profitable" banking industry is actually grabbing the meager profits of the real economy, and eager for the state to introduce corresponding supportive credit policies to "pull" the textile industry in the face of adversity.


    "Textile industry is an important livelihood industry, creating a large number of jobs for ordinary people.

    It is hoped that the state can coordinate financial institutions, increase financial support for industries, reduce guarantee conditions, reduce full margin, and provide timely relief to alleviate financial pressure on enterprises.

    Xia Tianlin, President of Shandong Textile Industry Association, said.


    3. labor difficulties


    The wage increase is above 15%, and more than 80% of the enterprises are still "

    Labor shortage

    "


    After the Spring Festival, a fellow called Liu Tianlin, chairman of blue Jun Group, hoping that his son as a construction worker could enter the textile mill to work.

    The townsman repeatedly stressed that it doesn't matter how much money he earns. Whether or not he develops is not important. The key is not to let his only child be tired.

    Liu Tianlin hung up the phone, and his mind was five mixed. "In recent years, the factory almost can not recruit young workers under 30 years old. Maybe the change of family structure is also the reason."


    The new generation of migrant workers is exerting great influence on the labor-intensive manufacturing industry, and the textile industry is the representative.

    The sample survey of China Textile Corporation showed that the average wage of textile industry increased by more than 15% last year, but more than 80% of the enterprises still had employment shortage.

    Many enterprises reflect that this generation of migrant workers is mostly single children, and their family structure and growth environment are quite different from those of the past.

    Because the noise and smell of textile factories are heavy and the labor intensity is large, the salary is not high, which makes it difficult for enterprises to recruit workers and to keep them hard.


    In order to alleviate recruitment difficulties and reduce labor costs, some enterprises choose to improve management system.

    Wu Weiqiang, general manager of giant Chuang Chuang, recalled that as a Hong Kong funded enterprise, when the enterprises started in 2004, the workers were queuing up to sign up.

    But last year, he raised the salary and welfare of his employees by 25%, planned to recruit 1000 workers, and only recruited 300. After the Spring Festival started this year, the company even failed to recruit 60 people.

    "I am now in three shifts instead of two shifts to improve labour efficiency, but the pressure on staff gap is still great."


    Some enterprises choose welfare to keep people.

    "Nowadays, young people do not see how much they can do, but how much they can earn.

    We are really cooperating our employees to work, free training and welfare improvement, lest employees lose their jobs.

    Du Xinsheng, deputy general manager of Ho Sheng group, said that last year, the company distributed electric vehicles to every employee, and there were various small benefits in the month.

    It is expected that corporate salaries will rise this year to retain staff.

    "It's not easy to stay, but to stay is victory."


    Others choose to build factories overseas.

    "Last year, the wages of employees increased by 13%, which is 10 percentage points higher than the sales revenue of enterprises, so the return rate of workers is 98%.

    However, enterprises can't afford to go on like this.

    When inspecting the monthly salary level of workers in Kampuchea for more than 70 dollars, only for domestic 1/4, Jiang Ming set up a branch in Kampuchea in 2010, and the first phase of clothing projects realized profits in that year.

    "Because the price is low, the European Union and the United States have their tax preferences, and orders are flowing to Southeast Asia in large quantities.

    Put the eggs in a few baskets, or is it safe? "


      

    4. tax burden


     

    Cotton spinning enterprises suffer from high levy and low deduction, and enterprises bear 4 percentage points.

    Unreasonable taxation


    Since the end of 2008, when the central economic work conference formally put forward the term "structural tax reduction", Ding Liming, deputy general manager of Shandong Yaguang home textile company, is more concerned about the special tax reduction problem in the textile industry.

    "During the Asian financial crisis, in order to support the development of the textile industry, China's export tax rebate was very strong. Now the problem of high yield and low yield of domestic cotton needs to be solved immediately, so as to stabilize the development of the real economy."


    China's textile enterprises need to pay 17% of the value-added tax, 25% of the income tax, and land use tax, urban construction tax, property tax, stamp duty, local education fees, local water conservancy construction fund, the disabled fund and other local taxes and fees.

    These tax items are the same as those of other industrial enterprises.


    However, the textile enterprises involved in cotton have suffered from unreasonable taxes on high value-added tax.

    Generally speaking, the deep processed products of crops are also agricultural products, such as soybeans and soybean oil, so the input and output taxes are 13%.

    However, the cotton spinning products after cotton processing are industrial products with a duty rate of 17%. Therefore, according to the current VAT regulations, the cotton textile enterprises shall apply the 17% output tax rate when calculating the VAT payment, while the deductible cotton input tax rate can only be 13%, which actually bears an unreasonable tax of 4 percentage points.


    "In the past, the cost of energy and labor of textile enterprises was relatively low, and enterprises could still accept this" high tax and low deduction "tax policy.

    But now the average profit rate of the textile industry is only 4%, and the state should draw the balance, reduce the tax burden of the enterprises, and give the textile industry a fair competitive environment.

    Xu Xijian, chairman of Shandong convective textile limited liability company, revealed that if the input tax and output tax of cotton can be kept consistent, the industry will add a profit of about 4000000000 yuan, which is undoubtedly sending rain to the struggling textile industry.


    Chen Lu, chairman of Da Dyeing Group, admitted that most enterprises do not expect state subsidies, only hope that the state does not charge more taxes and fees and provide a fair competition environment with foreign counterparts.

    "Enterprises rely on subsidies are not strong or long, because the pressure caused by market competition must rely on the pformation of their own way of development to digest.

    However, such problems as bank financing, domestic and foreign cotton prices upside down, cotton input tax and output tax are not unified, and so on. These are problems that can not be solved by the enterprises themselves and seriously affect the stability of the industry. It is hoped that the government will make early efforts to ensure the fair starting point for China's textile industry to participate in international competition.

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