Export Tax Rebate Subsidies To China Or Subsidizing The World?

11%, 13%, 14%...

I wonder if this number will continue to grow?

In order to mitigate the impact of the adverse environment on China's exports, the export rebate rate of textile and garment increased by 1 percentage points to 14% in November 1st after the export rebate rate increased from 11% to 13% in August 1, 2008.

In less than half a year, China's textile and garment export tax rebate rate has been raised 3 times in a row. The new deal should be a good thing for enterprises. But in the context of the global financial crisis, some people are happy and worried.

There is a good reaction in many textile enterprises. "It's better than nothing". "Raising 1 percentage points is also a good thing. At least we can take a little breath." "even if no adjustment is made, performance is improved as well." the callbacks of 1 or 2 points are hardly stimulating.

A policy of two voices, through the collection of different voices from the enterprise on the Internet, we can easily see that to some extent, the new deal does bring some hope to the enterprises on the edge of some cliff, but this "big meal" can not satisfy everyone's appetite. It is inevitable that some people will complain: "17% or 11%, it is useless. It is recommended that the state cancel it in time."

Do you subsidize China or subsidize the world?

At present, small and medium-sized enterprises generally encounter difficulties in financing, order and cost.

Due to the lack of the right to price, in the field of textile and garment exports, the profits from export tax rebates in the past have already been presented to foreign buyers in many rounds of competition. Therefore, some people say that export tax rebates are actually subsidized to foreign purchasers.

"China's textiles are of low price, good quality and strong competitiveness.

For Europe and the United States, even if the price is raised by 17%, it is also very cheap.

The boss of a trading company made his point.

The increase in the export tax rebate rate gives foreign investors the opportunity to lower their prices.

Some studies have estimated that the real benefit of domestic textile enterprises may only account for 50% to 60% of the tax rebate due to the fact that foreign businessmen are depressed by the export tax rebate rate.

Experts have timely suggestions. After every new deal comes out, there is no lack of a "lip fight".

Perhaps we all attach too much importance to the process of argument, but ignore the result of the essence.

The voice of opposition is too strong to achieve immediate results.

At a very opportune time, we might as well sit down and listen to the advice of the experts - a comprehensive upgrade from the development of the enterprise itself.

According to the two different voices of the industry, some experts say that fundamentally speaking, the impact of the increase in the export tax rebate rate on textile enterprises and some export oriented enterprises is only relieving pressure and will not change the development trend of the industry.

Because the increase of export tax rebate rate will not play a substantial driving force on the growth of export volume.

The increase in export volume is mainly dependent on the demand of overseas markets. Under the background of global financial crisis, the demand for foreign tax will decline, and if the main business income is not strong, the increase of export tax rebate rate will not be able to raise the scale of net profit of related enterprises.

Therefore, the increase in export tax rebates is only an expedient measure, and can not fundamentally solve the problem of industrial upgrading and product mix. For the textile industry with low operating efficiency, this policy is an emergency measure, and it has not yet calculated the actual amount of tax refund to foreign investors.

If we want to solve the problem of upgrading the industrial structure of such labor-intensive enterprises, we should work hard from the industry itself, eliminate backward production capacity, change the way of growth, and ultimately achieve the long-term stability of enterprises.

Yang Jing: editor in charge