The Whole Textile Industry Is In Urgent Need Of Zhejiang.

In March 24th, from the Zhejiang provincial foreign trade and Economic Cooperation Department, Zhejiang Province recently launched the first batch of foreign trade early warning demonstration points in 20 key industries.

This model is the first to help governments and enterprises cope with international trade barriers.

Affected by many factors such as Spring Festival snowstorm and American subprime mortgage crisis, China's export and even the industrial development situation has changed frequently.

In 1-2 months of this year, Zhejiang province dropped 4 billion 530 million to the US $4 billion 530 million in imports and exports, the first decline in 11 years.

According to statistics from the General Administration of customs, China's trade surplus in February was 8 billion 560 million US dollars, less than half of January's trade surplus of US $19 billion 490 million.

In this regard, the Ministry of commerce is paying close attention to the further impact of the subprime debt crisis.

In recent days, Liu Haiquan, deputy director of the comprehensive Department of Commerce, Li Ling, director of the import and Export Fair Trade Bureau, went to Zhejiang, Guangdong and other places to investigate and focus on the export situation of industrial enterprises.

In March 24th, the China Foreign Exchange Trading Center announced that the exchange rate of RMB against the US dollar reached 1:7.054.

So far, the renminbi has appreciated by 15% since the exchange rate reform against the US dollar.

Kim Yao, owner of Zhejiang BABEI group, said that because some of its US orders were signed at the rate of 6.7 to 6.8, if the exchange rate continued to rise, the loss of 6 million yuan would be evaporated at least one hundred million yuan.

Su Xiangqing, director of the Wenzhou Municipal Bureau of foreign trade and economic cooperation, is also worried about the foreign trade market.

In February this year, Wenzhou exported $68 million 480 thousand to the US, a decrease of 17.25% over the same period last year.

According to statistics from the Wenzhou Office of China Export and Credit Insurance Corp, from March 2007 to February 2008, the total amount of Wenzhou foreign trade export loss reported by the Department was $8 million 793 thousand and 800, of which 75% were from the United States, up 639% over the same period last year.

Data from customs are also not optimistic.

In 2007, the total export volume of textile and clothing was 171 billion 200 million US dollars, an increase of 18.9%, which is the first time that the export growth has dropped to below 20% since 2003.

In the first 2 months of this year, exports of textiles and clothing were US $25 billion 272 million, of which clothing exports increased by only 5.7%, an increase of 38 percentage points from the same period last year.

At present, due to the adjustment of export tax rebate, labor contract law and other factors, such as labor, raw materials, energy and logistics cost increase, many labor intensive industries generally increase production costs.

At the China East China Import and Export Fair held earlier this month, most enterprises negotiated price increases with customers only 3% to 5%.

First textile network statistics, in the first two months of this year, the US quota of textile quotas is only 9.23%, and the annual quota utilization rate will not exceed 80%.

According to the China Clothing Association survey, small and medium-sized enterprises, especially small and medium-sized processing enterprises, have encountered survival crisis, especially in small businesses with a population of less than 100 people. The number of small and medium-sized enterprises that only shut down by foreign trade processing accounted for 10% of the total number of small and medium-sized enterprises in the whole region, and the small and medium-sized enterprises of clothing began to shrink.

Du Yuzhou, President of the China Textile Industry Association, once said that the overall profit margin of China's textile industry is only 3.9%, and its affordability is very limited. At present, 2 / 3 of enterprises are at the edge of losses, and the factors such as the US economic recession and RMB appreciation will further affect the development of the industry.

As the industry expects that this year's textile and garment export tax rebate rate will continue to decline 4 percentage points, the relevant analysts predict that if the news is true, this year the textile and garment industry will have 30% of the enterprises to withdraw from the market.

Shrinking trade data has attracted wide attention.

The report from the research group of the City Finance Research Institute of ICBC said that if the trade surplus reached 330 billion US dollars in 2008, that is, an increase of about 30% over the same period last year, compared with the net export growth of 47% in 2007, its growth in GDP would be reduced by 1.8 percentage points.

At the beginning of this month, Liu Haiquan, deputy director of the comprehensive Department of the Ministry of Commerce, and other officials took the team to Guangdong, Jiangsu and other provinces and cities for investigation. Meanwhile, they closely followed the US subprime crisis and the changes in US industrial equipment procurement, project start-up rate, changes in the unemployment rate, consumption and so on, and discussed various measures to ensure stable growth of exports and avoid the ups and downs of foreign trade.

In March 24th, the foreign trade department of Zhejiang province launched the foreign trade early warning demonstration point in 20 well-known industries, such as Yuhang home textiles, Fuyang chemical fiber and Jiaxing fasteners, to assist industry enterprises to collect information on foreign trade barriers and take precautionary measures.

Li Ling, director of the Fair Trade Bureau of the Ministry of Commerce and trade, who has made a special trip to Zhejiang, said that this is a good complement to the "four body linkage" mechanism of the "Ministry of Commerce, local authorities, intermediary organizations and enterprises".

Wei Jianguo, Vice Minister of Commerce, told the Beijing media that the Ministry of Commerce and other relevant departments are working on concrete plans to continue to guide enterprises to upgrade and optimize their structures.

In this process, we will fully consider and absorb the views of export enterprises and adopt the principle of prudence and gradual progress.

Especially when there are many variables in the trade environment, we should grasp the regulation and control efforts to create a favorable development environment for enterprises.

Mei Xinyu, a researcher at the Ministry of Commerce, pointed out that some industries and enterprises can pfer to some preferential tariff policies, enjoy the same market treatment as the enterprises in the host country, and get the comparative advantage of resources and labor force.

In addition, with the improvement of the income level of domestic residents and the gradual enlargement of domestic demand, domestic demand is expected to become a new profit growth point for the consumer goods industry.

In response to the decline in the trade surplus in February, Chen Deming, Minister of Commerce, has publicly stated that "there are many special circumstances for the decrease in the trade surplus in February and will gradually return to normal in March."

In 2008, the goal of the total value of China's foreign trade imports and exports was about 15% growth.