Gold Fingers Upgraded By Chinese Enterprises

In 2008, China's textile and garment industry was faced with many severe tests. Quite a number of garment enterprises, especially small and medium-sized enterprises, were short of funds, and some small and medium-sized enterprises in the southern industrial clusters had already closed down.

Why is it so difficult for small and medium-sized garment enterprises to raise funds this year?

How should macro policies regulate and control clothing enterprises?

On this topic, he interviewed Sun Ruizhe, vice chairman of China Textile Industry Association, director of China Textile Economic Research Center, Sun Huaibin, spokesman of China Textile Industry Association, Yuan Yuan Ming, a famous economist and researcher of Institute of economics, Chinese Academy of Social Sciences, and Yang Danhui, an Associate Research Fellow of Institute of industrial economics, Chinese Academy of social sciences.

The "golden finger" of the national macro regulation and control in recent years has been attracting frequent moves.

In August 29th, the China Banking Regulatory Commission issued a document requiring banks to set up small business credit departments, and said it would speed up the examination and approval of new financial institutions such as village banks.

The banks need to put forward specific measures by September 20th and inform the CBRC about the implementation.

Prior to August 18th, the central bank, the Ministry of finance, the Ministry of human resources and Social Security jointly issued a document saying that the ceiling of small secured loans for labor-intensive small businesses increased from 1 million yuan to 2 million yuan, and the lending rate was allowed to float 3 percentage points.

In August 19th, the Ministry of Finance said that the central government would increase its support and arrange a special fund of 3 billion 510 million yuan for SMEs to support the healthy development of SMEs.

In August 6th, commercial banks indicated that they would increase their support for SMEs in the second half of the year, increase 5% on the basis of the original credit scale, increase 10% to local commercial banks, and specializes in small and medium enterprises and agricultural loans.

Since May, the CBRC and the Central Bank jointly issued the guiding opinions on the pilot project of small loan companies.

Textile and garment enterprises concentrated on the Yangtze River Delta frequently issued related measures.

Zhejiang took the lead in issuing the Interim Measures for the registration and management of small loan companies in Zhejiang Province, which is the first regulation in the country to regulate the establishment conditions and management system of small loan companies.

Shanghai city finance office has begun to accept the pilot application of microfinance companies since mid September, and is expected to launch the first batch of small loan companies in Shanghai in October.

Jiangsu will set up nearly 100 Rural Microfinance companies by the end of 2009, attracting nearly 8 billion yuan of social capital, and 15 will be established this year.

Dongguan, a small and medium-sized garment enterprise, is relatively low-key, but companies are also enthusiastic about reporting small loans.

In the Midwest, the central and Western governments are also following up. The relevant policies for the pilot projects of small loan companies in Chongqing will be introduced soon. According to the draft already issued, the minimum threshold of registered capital for such companies is 5 million yuan.

Relevant departments of the Hunan provincial government and financial regulators are also working on policies to encourage the establishment of microfinance companies.

Sun Ruizhe: the problem of capital is the most serious problem encountered by the industry. It is difficult to determine the effectiveness of the policy. The small and medium-sized enterprises in the textile and garment industry can "quench thirst"?

"From the end of last year, the funding problem has become the most serious problem encountered by the textile and garment industry."

Sun Ruizhe told reporters.

Sun Ruizhe believes that the state related loan policy gives small and medium-sized enterprises a certain amount of funds, but it is not clear how to do it.

It is generally believed that textile and clothing are traditional industries with excess capacity. Some banks even put them in the sunset industry.

Although loans to SMEs do not have clear restrictions on the industry, they need to assess their business performance, while the textile and garment industry is a small profit industry, and it is hard to get support.

He disclosed that the China Textile Industry Association is actively communicating with relevant departments of the state, hoping to give specific support to small and medium-sized garment enterprises in terms of policies.

Sun Huaibin: what kind of enterprises do the new credit loans go to is not clear. Sun said in an interview with reporters that the central bank's monetary policy has been changed from "two prevention" to "one insurance one control" at the beginning of the year. Under such a monetary policy with controlled money, what kind of small and medium-sized enterprises are credited to the state's new credit funds is not clear yet.

For the textile and garment industry, we hope that the majority of small and medium-sized enterprises can consider the particularity of the textile and garment industry rather than overtilt the high-tech industries. After all, the textile and garment industry is related to exports and employment.

The financing of SMEs in China mainly depends on bank loans for a long time. Although the first 5 small loan companies were set up in 2006, the small loan companies can not be compared with commercial banks and rural credit cooperatives from the scale of credit, business scope and business objects, and their loans are only a drop in the bucket for a large number of small and medium-sized enterprises that need credit support.

Yang Danhui told reporters that the textile and garment industry is a fully competitive market oriented industry. It is difficult for the country to have large supportive policies, including the callback of processing trade policies.

The situation of textile and garment industry, especially the garment industry, is estimated to be insufficient this year. Many policies can only play a temporary role.

Although temporary measures are also necessary, most SMEs may not count on them.

"The industry needs to be upgraded." this year, macro data and enterprise micro feel are not good.

Yuan Yuan Ming: there are deep reasons for the financing difficulty of SMEs. "Yuan Ming Ming said in an interview with reporters:" in the short term, the reason for the difficulty in obtaining loans is tight monetary policy. Not only the clothing industry, but also the whole manufacturing industry are all strained, and only a few monopolistic banks rely on their own funds, and their days are better.

Last year, enterprises could also solve the difficulties caused by monetary tightening through joint ventures, but this year the state has strictly controlled foreign businessmen.

To solve the problem of SME loans, monetary policy must be relaxed.

At present, it is a tug of war to control inflation and economic growth. The former has the upper hand, and now the implementation of "one insurance and one control", the economic growth is rising, but we still don't attach enough importance to it.

Yuan Yuan also pointed out that the financing of textile and garment enterprises should not rely solely on monetary policy.

In the medium to long term, the appreciation of RMB has become an inevitable trend. Wages and environmental costs are rising. Textile and garment industry can not grow at low cost. Structural adjustment and industrial upgrading must be carried out. This is the "golden finger" of the long-term development of the garment industry.

"The textile and garment industry has come to a new stage of upgrading."

Yuan Gangming said that the costumes of coastal enterprises should go to the stage of relatively high added value. Enterprises should either increase investment, upgrade equipment or close businesses.

The expansion of investment often requires tens of millions of dollars, and enterprises are afraid that they can not be recovered, so many enterprises have withdrawn.

"There is a deeper reason for the financing difficulties of SMEs, which is institutional and institutional."

Yuan Gangming analysis, "many small and medium enterprises are family businesses, they do not want to invest in a certain degree, do not want to become bigger, and many enterprises rely on non-standard development. The greater the risk, the greater the risk.

30 years have passed since reform and opening up, and the scale of enterprise assets has become larger and larger. However, the state has no clear definition of private property rights, and the risks of operating enterprises are increasing.

In addition, the financial capital market is very dangerous, the organizational structure of large enterprises is stronger and stronger, and the SMEs are oppressed and plundered, and small and medium-sized enterprises have not gained the legal competitive status. Therefore, from a deeper perspective, we need to reconsider the drawbacks of the system and build a scientific economic and ecological balance mechanism.

It is another "golden finger" in another sense that the clothing times reform untimely industrial policies and establish a long-term mechanism conducive to the development of enterprises.

In view of this, sun Huaibin believes that SMEs' financing difficulties are universal problems in the world.

For small and medium-sized textile and garment enterprises, the solution is to make processing and earn processing fees; the two is to cooperate with powerful enterprises; three, the state attaches great importance to small and medium-sized enterprises, so as to get financial institutions' support.

Yang Danhui: many policies can only play a temporary effect. Yang Danhui said that when the money was tight, the labor-intensive industries were often sacrificed as early as possible. The adjustment of enterprises by making brand and updating equipment would result in huge waste of resources and great pains in the industry.

A reasonable way is to establish a long-term financing guarantee mechanism, and effectively support technological innovation and brand management.

"Don't neglect enterprises with poor living conditions.

Faced with pressure, it is impossible for every enterprise to thrive and the state has the responsibility to help enterprises digest some difficulties.

The textile and garment industry should not be abandoned in our policy and industry. "

Yang Danhui said.

Sun Ruizhe has taken the enterprises to inspect the textile and garment industry in Italy. The local government attaches great importance to the two contributions of SMEs to the promotion of employment and GDP.

The policy support for small and medium-sized enterprises has two main aspects: first, the public service system, including quality inspection, external development, promotion, national level subsidies, etc. Two, loan guarantee, and a certain amount of revenue is used as guarantee fund.

Sun Ruizhe believes that solving the financing difficulties of SMEs in the textile and garment industry is in three aspects: first, to measure whether the textile industry has excess capacity and whether there are comparative advantages in the international market; and second, we can not judge the technological content of the textile industry from traditional perspective.

Textile and garment industry is not backward labor intensive industry, let alone this industry is backward elimination industry; third, all kinds of standards should not be excessive.

We should consider whether the international standards such as environmental protection, product technology and so on are applicable to the industry, which standards are beyond the international level, such as labor employment and working hours standards, which are higher than those of developed countries.

"Do not engage in a new great leap forward."

At the end of the day, Sun Ruizhe said, "we should not exceed the standard of social development, set high standards, not develop high-tech industries, and attach importance to traditional industries with a large quantity and wide coverage."