Liu Wenjie: Shanghai Free Trade Zone Releases Reform Dividend For Textile Industry

The Shanghai free trade area (P) has been listed for more than a month, and various industries have given high attention.

Some a href= "http://www.91se91.com/news/list.aspx ClassID=101112107105" > textile enterprises < /a > have visited the FTA to see the opportunities and potentials of the establishment of the FTA for business development.

There are some views in the industry that the planning area of the free trade area is too small, and the preferential policies such as tax incentives are not enough.

Therefore, most textile enterprises still hold a wait-and-see attitude and seldom take substantive actions to enter the FTA.

In fact, it can be found that the establishment of the free trade area is not only conducive to building an upgraded version of China's economy, but also has a rare historical opportunity for the better development of textile enterprises.

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< p > first, vigorously developing trade in services will boost the pformation and upgrading of textile trade.

In the past, the textile industry, as a traditional entity industry, was accustomed to relying on low production costs, land and tax policies to survive.

When multinational textile companies have set up Asia Pacific Headquarter and integrated operation centers such as trade, logistics and settlement to quickly seize the core position of Global trade value chain, domestic textile enterprises only adopt simple ways to pfer production capacity to some ASEAN countries. With the global cost and policy depression becoming less and less, this traditional investment driven trade path will lead enterprises to narrow and narrow.

Offence is the best defense.

At present, China's textile enterprises need to actively carry out trade in services in developing international trade, and focus on fostering new competitive advantages in foreign trade, focusing on technology, brand, quality and service, so as to seize the advantageous position in the global trade value chain.

Thus, < a href= "http://www.91se91.com/news/list.aspx ClassID=101112107107" > Shanghai Free Trade Zone < /a > encouraging the development of service trade policies and regulations will effectively boost textile enterprises' training of new forms of international trade and further enhance the internal driving force of the pformation and development of the industry.

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< p > secondly, financial reform will significantly alleviate the survival pressure of textile enterprises.

Reform in the financial sector is the highlight of the Shanghai free trade zone. Through the implementation of the policy of RMB capital account convertibility, interest rate marketization and cross border use of RMB, textile enterprises are expected to change the difficulties of financing in the past, financing expensive and exchange rate fluctuations, affecting the normal acceptance of foreign orders by enterprises, and actively developing offshore businesses, so as to fully enjoy the reform dividends brought by Shanghai free trade area.

In the past, the offshore business of enterprises was always influenced by foreign exchange control and financial cost. Since the establishment of the free trade zone, the RMB can be freely convertible and the interest rate market is being pformed. Enterprises can rapidly expand offshore businesses. Conditional textile enterprises can also establish logistics companies, supply chain companies and trade service companies in the FTA, and carry out offshore and onshore businesses.

For example, the red bean group has set up a trade limited company in the free trade area, developing import and export trade, and preparing to set up investment and Development Co., Ltd. to explore the road suitable for the development of red bean financial business and promote the real economic development of the red bean.

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< p > again, the advantage of regional advantages will radiate the rapid development of textile enterprises in the area of < a href= "http://www.91se91.com/news/list.aspx ClassID=101112107108" > Yangtze River Delta < /a >.

In terms of location, Shanghai has the advantages of convenient pportation, well-developed financial and service industries, abundant surrounding industries and abundant labor resources.

After the establishment of the FTA, Shanghai as a bridge between hinterland economy and international docking, the window effect is more obvious. It will promote the rapid development of trade, processing and service industries among other important textile provinces such as the Yangtze River Delta region.

The "diffusion effect" and "demonstration effect" of the FTA will first radiate the Yangtze River Delta region, and the competitive situation of the regional economy will usher in a new round of adjustment, which will drive the textile enterprises in the Yangtze River Delta to usher in a new opportunity for sustained and rapid development.

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< p > what needs to be reminded is that the reform bonus released by the reform of Shanghai free trade zone for the textile industry is different from the policy big profits made by all the parks in the last century for attracting foreign investment. The one-time dividend dividend policy can give the most of the first mover advantage of reform, and the path of economic growth in the future industry should gradually get rid of the external dependence on policies and resources, and actively seek an endogenous and sustainable economic growth path under the free trade deregulation reform, and promote the economic efficiency and high quality growth of the industry in the 80s.

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