Textile And Garment Tax Rebates Are More Attractive Than Quota Cancellation.

In 2009, textile enterprises generally faced difficulties in reducing orders, lowering prices and increasing capital demand.

Under such circumstances, the abolition of quotas does not constitute a solid advantage for textile SMEs. What companies most want now is that the export tax rebate rate can continue to rise. Since January 1st this year, China's textile exports are no longer subject to quota restrictions.

This news did not cause obvious reaction in textile enterprises.

In the interview, some entrepreneurs told reporters that, first of all, enterprises had expected this. Secondly, under the influence of the world financial crisis, the demand for textile market in Europe and America dropped sharply, and the prospect of attractiveness and profitability was greatly reduced.

Many textile enterprises are in a very difficult situation, the market demand will not grow rapidly, self-discipline, coping and other issues still cause widespread concern.

How should we understand the self-discipline of enterprises? After hearing reporters' interview on corporate self-discipline, Zhen Zhong Ming, chairman of Jiangsu Yixing Lok Qi textile printing and dyeing Limited by Share Ltd said, "in the scope of the law, the concept of" self-discipline "in the media concept is hard to achieve. It depends on how to understand it.

When it comes to enterprise self-discipline, Zhen Zhongming thinks that there are two meanings: first, enterprises must abide by the law; two, entrepreneurs should avoid major mistakes.

In addition, the competition between enterprises in accordance with the laws of market economy is not unjustifiable.

Why do I say so?

Looking at the current situation, the demand for the international textile market, especially the demand for high-end products, has suddenly decreased dramatically, and our domestic textile enterprises have obviously overproduced their production capacity through the rapid development in recent years.

Zhen Zhongming explained, "as a manufacturing enterprise, once the investment is made, the recovery of capital and the profitability of enterprises need a time cycle.

However, the international market may suddenly change, and may also be capricious.

This point, let alone our textile enterprises in China, in fact, no country in the world can grasp it.

The result of excessive printing of banknotes by the US government, on the one hand, caused the false prosperity of excessive consumption in the United States, and on the other hand, caused large-scale expansion of production and processing capacity in emerging market countries.

Now, the problems of the US economy and the failure of the market have caused many surplus capacity in China and many developing countries to face a painful adjustment process. "

"There are only two ways to put it before entrepreneurs. One is to overcome difficulties and stick to it. The two is to admit defeat and surrender." there is no third way to go.

Zhen Zhongming said, "in the Yangtze River Delta, almost 99% of them are private enterprises. The greatest asset of these entrepreneurs is the enterprises themselves.

In this case of life and death, for self-employed entrepreneurs, the meaning of self-discipline may have more new explanations on the basis of the original.

Three challenges to test viability. Lin Zhongyi, chairman of Limited by Share Ltd in Changzhou on the night of the moon, said that the abolition of quotas did not constitute a solid advantage for textile small and medium enterprises. What the enterprises are most looking forward to is that the export tax rebate rate can continue to rise.

Lin Lin said that the initiative is not in our hands either in decline or in recovery in the European and American markets.

Recently, although the State Council has promulgated a series of policies to support the textile industry, it is not only time but also the local governments to do a lot of work to really implement them.

For many small and medium-sized textile enterprises that have already been in trouble, far from being near thirsty, the effect of the export tax rebate increase can be immediate.

For the difficulties faced by textile enterprises in 2009, Lin Zhongyi summed up 3 items: reduced orders, lower prices, and increased demand for capital.

He believes that all textile enterprises will be forced to overcome these difficulties around the 3 aspects this year.

"This year, the reduction of export orders has been confirmed, and there is another change, that is, the volume of orders is smaller.

For example, our orders for denim and khaki fabrics in the past were 1 million 500 thousand to 2 million meters.

But now, the average volume is only 2.3 million meters, and the 500 thousand meter is even bigger.

Such changes in the market will make some enterprises without quick response capability be eliminated. "

Lin Zhongyi explained, "the price reduction is also an indisputable fact. At present, the price of our order is lower than that of last year, and the average per rice cloth is 1~2 yuan.

There are objective reasons for this, because cotton prices have dropped and cotton yarn prices have dropped by nearly 2000 yuan per ton, so it is normal for international buyers to ask for price cuts.

However, the rapid decline in the price of export fabrics and clothing has made some enterprises with poor profitability face out.

Most seriously, because of the impact of the international financial crisis, foreign importers continue to extend the time limit for letters of credit when issuing bank letters of credit to domestic production enterprises.

For example, letters of credit in the past 20 days or 30 days are now extended to more than 45 days.

As a result, the turnover period of funds in textile SMEs is longer, and the demand for capital increases. Some enterprises with tight funds can not survive.

In the face of the sharp shrinking of the international market demand and the increasing competition in the domestic market, all the entrepreneurs interviewed have set up the "innovation, technology and brand" survival prescription for their enterprises.

After in-depth interviews, reporters found that in addition to the 3 key words of the universal good, every excellent company actually has its own exclusive martial arts secret.

Liu Zibin, general manager of Shandong Lu Tai textile Limited by Share Ltd, said that the batch production of 200 to 300 pieces of pure cotton single yarn fabric is a sign to show the technological level of the enterprise.

The summer women's shirt fabrics made of new fibers, moderately elastic men's shirt fabrics and anti-static, radiation protection and anti ultraviolet functional fabrics are the main products of new orders.

Liu Guozhong, chairman of Jiangsu Zi Jin Hua textile Polytron Technologies Inc, revealed that after several years of efforts, the jute fine processing technology with independent intellectual property rights has been gradually improved.

In addition to traditional fabrics and clothing products, the "series of products" is expanding to the field of industrial textiles.

Liu Yuexing, chairman of Binzhou cheerful home textile Limited by Share Ltd, and Zhen Zhongming, chairman of Yixing Le Qi Textile JOINT-STOCK Company, briefed reporters on some of the know-how of enterprises in the export and operation of products.

These business skills made the home textile export volume increase by 70% last year, while Lok Kei textile kept the same growth in output, output value and profit in the US's sharp reduction of 50% last year.

What Lin Zhongyi showed to reporters is not the conventional products of enterprises. Those projects involve innovations in technological innovation, product design, market and business models, and also involve investment plans in new fields.

It is these strict confidentiality projects that have achieved good results and compensated for losses in the production of traditional products.

Similarly, there are two "non invited" production shops in Shandong, which produce two kinds of products with high technology and high added value.

Reporters under the guidance of group leaders, through the twists and turns passageway, through a number of "sentries", it was fortunate to see the production site.

Before the visit, the reporter was clearly told: absolutely can not take pictures.

As Shen Jianjun, director of Zhejiang Mei Xinda group, concluded, "in the face of a serious crisis, we must have the best and most distinctive characteristics of the profession, so that we can have a place in the reconfiguration of the industrial value chain.

Specialization, differentiation and irreplaceable are the ways to settle down the small and medium-sized textile enterprises.

Yang Jing: editor in charge