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    Who Will Win The Textile Industry And Who Will Be The Winner?

    2009/2/24 0:00:00 10226

    Go To The Countryside

    First of all, let's hear the voice from the government: the textile revitalization plan approved by the State Council proposes expanding domestic demand economy and opening up the rural market.

    Let's listen to the view of enterprises again: home appliances can go to the countryside and cars can go to the countryside. Why can't the textile and clothing most needed by the farmers go to the countryside?

    Starting the rural market can greatly digest the massive inventory pressure of enterprises.

    What do they think of the farmers as terminal consumers?

    Some experts say that there are too few textile and clothing outlets in rural areas to meet the needs of modern farmers.

    Such an unanimous voice of going to the countryside naturally shows that this is a win-win plan.

    However, if textile is going to the countryside, if it is implemented, is there any "deficit"?

    In the real market economy, there must be a deficit if we win.

    Textile to the countryside, on the face of this "deficit" may be the government.

    First, financial subsidies.

    According to the announced plan, household appliances and cars go to the countryside to adopt a direct financial subsidy to the farmers' consumers. Textile and rural areas are small commodities. Subsidies for farmers are difficult to implement. The government may adopt subsidies to enterprises or reduce taxes and fees.

    Perhaps the most influential government regulators are the ones most affected.

    The rural market is difficult to start. A very important reason is that there are too few clothing sales outlets. After increasing the sales outlets, the management and administration departments of the industrial and commercial tax authorities at the township level will greatly increase the workload and management difficulty.

    If the tax relief policy is further implemented, it will directly affect the revenue of the grass-roots government.

    Financial institutions at the grass-roots level may also suffer losses.

    Under the impact of the financial crisis, tens of millions of migrant workers return to the countryside, and one of the ways to enable them to re employment is to support entrepreneurship.

    For the textile industry, a large number of migrant workers need financial credit support, which has brought unprecedented challenges to grass-roots financial institutions.

    However, if there is a deficit, there must be a win.

    Has the government departments and financial institutions at the grass-roots level benefited from this process?

    The answer is yes.

    First, they acted as engines of China's domestic demand economy, and made practical contributions to the adjustment of the national economic structure.

    Second, supporting farmers' entrepreneurship, alleviating the current urgent employment problem for migrant workers, and helping stabilize social order.

    Moreover, for industrial and commercial, tax and financial credit institutions, textile and rural areas have brought a lot of work pressure, but the market prosperity and economic development brought by this will bring more tax and interest income in the long run.

    More importantly, this prosperity and development from the grassroots and rural areas will bring fundamental changes to the country's overall economy, and solve major problems such as insufficient domestic demand, structural imbalance and employment crisis.

    In this sense, they are also "winners".

    The river is full of water and small rivers.

    It is not difficult for ordinary people to understand this complementary relationship between the state as a whole and the local grass-roots units.

    Wang Xiaonan: editor in charge

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