Weak Domestic Textile And Garment Exports May Raise Export Rebate Rates For Some Commodities In The Near Future

China's Ministry of Commerce may announce an increase in exports of some commodities in the near future

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The tax rebate rate for export commodities including furniture, footwear and toys increased from 13%-15% to 17%.

The latest tax rebate policy is likely to be implemented this month, and the timing of the mainland media reports depends on whether the trade data will continue to weaken.

China

The import and Export Chamber of Commerce September 6th said that several chambers of Commerce had recently proposed to the mainland Central Committee to raise the export tax rebate rate of some commodities. "The main export commodities are furniture, footwear and toys which are obviously declining, and expect the tax rebate to be raised to 17%".

If it goes smoothly, it is possible that the policy will be promulgated before October.

According to another source, according to the monthly customs bulletin, the import and export of August remained unchanged, and exports remained small.

He did not disclose specific figures.

Some analysts say that the tax rebate adjustment is mainly in the labor-intensive industry. If the policy adjustment is fulfilled, it means that the decision-making level is not only to stabilize the growth of foreign trade, but also to stabilize employment.

The publication of bad trade data in July has led to speculation that the policy of steady growth will be overweight.

Exports in mainland China increased by only 1% in July compared with the same period last year, while imports increased by 4.7%, and 1.6% and 1.2% respectively after seasonally adjusted exports.

The sharp deceleration of this export takes place on the traditional export peak season of Thanksgiving and Christmas Eve. The third quarter's exports are crucial to the growth of the mainland's annual trade volume of "ten".

According to the information released by the mainland customs, the total export volume of footwear in mainland China amounted to US $25 billion 690 million in 1-7, an increase of 9.4% compared with the same period last year. The amount of toy exports was 5 billion 604 million US dollars, up 6.82% over the same period last year. Furniture exports amounted to 27 billion 177 million US dollars, up 28.1% over the same period last year, and the total export volume of garments and clothing accessories was 82 billion 930 million US dollars, down by 0.2% over the same period last year.

The foregoing chamber of Commerce said that although the export volume of many categories of commodities still maintained a single digit growth, the number of exports has declined, and the situation worsened in the past two or three months.

Shoes, toys, bags and furniture are typical representatives of the labor-intensive industries in mainland China. For example, textile and garment industry has attracted 100 million people from the upper reaches of the whole cotton chain to the downstream industry.

A drastic adjustment of the export rebate rate on the mainland after the outbreak of the financial crisis in 2008, the decision-making level has substantially increased the export tax rebate rate of many commodities including electromechanical, textile and clothing.

Whether the proposal for raising the export rebate rate can be adopted by decision makers is one of the variables in the current financial situation.

The overall downturn in manufacturing and the real estate market has resulted in a general reduction in local finance. The fiscal and taxation system says that the current value-added tax rate is 17%, but the actual levy is only 12%-13%, and the average level of the current export tax rebate rate is the same. It is difficult to raise the tax rebate again.

Wang Qianjin, an analyst at the first textile network, said that if the tax rebate rate of the textile and garment industry was initially raised from 16% to 17% of the total tax rebate, it would increase the industry profit of about 10000000000 yuan, which would help to alleviate the downturn in the industry, but the practical significance is still limited.

Huo Jianguo, President of the Ministry of Commerce, said that the adjustment of export tax rebate can ease the current pressure of export enterprises, but it is difficult to solve practical problems.

He said that at present, China's export enterprises are heavily burdens, including the cost of raw materials, taxes and poor credit environment. "The government should consider and focus on a more extensive view to alleviate the pressure of enterprises, not just on minor issues."

He cautioned against the fact that the manufacturing sector in China was gradually weakened due to cost pressures and competitiveness. He said that the data in the first half of this year showed that China's share of the mainland market in the international market has shrunk.

Recently, sporting goods giant Adidas also announced that it will close its only direct factory on the mainland in October this year, the factory in Suzhou has 160 workers.

Adidas's main supplier in China said Adidas's global orders were shrinking, especially in mainland China.