The Government Is Preparing To Raise The Export Rebate Rate Of Textiles For Emergency Rescue.

Since September 15, 2006, the export rebate rate of textile products has dropped from 13% to 11%, and has been lowered again after 2003's 4 percentage point reduction from 17%.

In June 19, 2007, the export tax rebate rate of garments, bags and toys dropped from 13% to 11%, and the export tax rebate rate of viscose fiber was reduced to 5%.. Up to now, the tax rebate rate of textile and garment export products (except viscose fiber) was 11%.

In the 1-4 month of this year, the United States imported 8 billion 699 million dollars of textiles and clothing from China, down by 2.64%.

Lixin cloth street of Guangzhou Zhongda textile circle has been entangled in the past big and small goods vehicles.

Now, the whole street is quiet and even lazy. At three o'clock in the afternoon, the streets are deserted.

"This is hardly the difficulty that Chinese textile industry has ever encountered. The appreciation of RMB and the rising cost of enterprises are mixed with many factors."

Sun Huaibin, director of the China Textile Industry Association Information Center, said that the association is lobbying in various ways to promote textile export policy adjustment.

This month, the central high level frequently visited the key areas of manufacturing, and the textile industry became the focus of the government.

Wen Jiabao, premier of the State Council, went to Jiangsu and Shanghai. Xi Jinping, vice president of the state, went to Guangdong. Vice Premier Wang Qishan went to Shandong. Minister of Commerce Chen Deming and vice premier Li Keqiang went to Wenzhou.

The launching of large-scale research is interpreted as a harbinger of government support policies.

It is reported that the textile export tax rebate rate will increase by 2 percentage points, the export rebate rate of clothing will be increased by 4 percentage points, and the export tax rebate of viscose fiber will be raised to 15 points from the current 5 points. The policy is expected to be introduced from the end of this month to the beginning of next month.

However, the Ministry of commerce did not respond to specific details, saying only that it had submitted the adjustment proposal to the relevant ministries and commissions, and had to wait for the final approval of the Ministry of industry and information technology and the State Council.

"I have been doing textile for more than ten years, and I have never encountered such a thin market.

Upstream raw materials continue to rise, downstream clothing exports have dropped sharply, two heads under pressure, everyone is still vicious competition.

Liang Guangquan, chairman of Jiamei Textile Co., said, shaking his head.

Liang's office hangs three clocks, one can know the time of three time zones in New York, Paris and Beijing, but now the internal and external sales are the same.

"There used to be a customer who orders millions of dollars, but not fifty thousand or sixty thousand dollars this year."

Liang Guangquan said that last year, all kinds of cloth exported directly by Jiamei accounted for 50% of the annual sales volume. This year less than 20%. "if last year was 3 dollars a metre cloth, this year the customer asked for no increase in price.

Now, raw materials and labor are rising, but not raising prices can not be done.

In Liang Guangquan's view, the global economy is weak, and international buyers prefer to digest their inventory first, and be more cautious when choosing new fabrics and clothing.

According to the US Department of Commerce's textile office data, in the 1-4 month of this year, the United States imported 8 billion 699 million US dollars of textiles and clothing from China, down by 2.64%. compared with the same period last year, of which imports were $2 billion 948 million, an increase of 6.74% compared with the same period last year, and imports of clothing were US $5 billion 751 million, down by 6.84%.

The men's wear Department of the two floor of Guangzhou white horse clothing city, Mr. Gump, has been sticking to it for seven years. After the contract expires two months later, he intends to leave and pfer to another camp.

"In the past, there were customers everywhere, packed and pported in bulk, and now the business is light."

Mr. Gan said that the appreciation of the RMB exchange rate was too fast and the export business of stalls was basically stopped.

"It was not a problem to sell twenty thousand pieces of clothing a year before, and now the most is seven thousand or eight thousand, and the renting is not earned."

Interviewed for more than half an hour, no one patronized Mr. Gan's stalls.

He said that when the booth was rentals from other people, the rent would be 23 thousand yuan a month, and "now the sublease will be fifteen thousand, down by 35%".

In fact, the impact of the textile and garment industry has spread to the upstream and downstream industries.

According to the National Bureau of statistics, the 1-5 month profit of the chemical fiber industry, which is the main raw material of the textile industry, dropped by 26.8%.

A boss who did not want to be named told reporters that the gross profit margin of the textile industry was around 5%, which was based on the volume. "This year's profit has dropped by at least 30%, even if it can be fair."

China Textile Industry Association's survey shows that in the first quarter of this year, Jiangsu, Zhejiang, Shandong and other 6 provinces and cities, the average profit of 2/3 enterprises in the textile industry is only 0.62%..

Asked the boss, a stall at Lixin Bu street.

Under the gloomy market, textile and garment export provinces such as Zhejiang and Jiangsu have become the key areas of research such as Ministry of Commerce and State Administration of taxation.

On July 4th, Chen Deming, Minister of Commerce, took part in the "Zhejiang business and Trade Association Symposium on business situations". He stressed that at present, there will be no regulation of the manufacturing sector at the policy level. In view of the issue of RMB exchange rate, it is suggested that enterprises "make good use of US dollar assets and look for opportunities in crisis".

Two days later, Vice Premier Li Keqiang of the State Council also visited Wenzhou.

"The state has attached great importance to the survival of textile enterprises. The purpose of the survey is to prevent inflation and prevent economic downturn."

Cao Xinyu, vice president of the China Textiles Import and Export Chamber of Commerce, said.

The government's large-scale research has also been interpreted as a harbinger of government policy.

According to sources, there will be a huge adjustment in the export tax rebate of viscose fiber, which is expected to be released in the middle of this month.

"The increase will probably reach 10 percentage points, from 5% to 15%., which will increase the net profit of the textile industry by about 13000000000 yuan," he said.

It is said that most of the textile export tax rebate rates will be increased by 2 percentage points and the export rebate rate of clothing will be increased by 4 percentage points, with the exception of viscose fiber export rebates.

In addition, the new deal may also exempt some textile machinery and automatic winding machines from importing tariffs, and adopt multiple measures to help slow down the appreciation of the RMB exchange rate and appropriately solve the liquidity problems in the textile and garment industry.

Chen Shujin, vice president of China Textile Industry Association, said the government will formulate special policies to maintain the healthy and sustainable development of textile industry.

However, the specific support efforts still need to be approved by the Ministry of industry and information technology and the State Council.

"This year's situation is different from last year. The comprehensive effect of RMB appreciation and the US subprime mortgage crisis has made the textile industry unbearable and the adjustment must be made."

The Ministry of Commerce said that the export tax rebate rate of textile and apparel had been reduced to a certain extent to alleviate the huge trade surplus, and now we should take into account the survival of enterprises.

But the person also said that the timing of the adjustment policy is still subject to the final decision of the relevant ministries and commissions.

"The polarization of textile enterprises is very serious.

In 2007, enterprises experienced many adjustments, and the enterprises with higher value-added products, longer brands and longer industrial chains were more resilience.

Sun Huaibin said that although the association is fighting for a tilt policy, raising the export tax rebate rate can also give enterprises a certain buffer time to adjust and upgrade.

But even if policies are better, enterprises should also focus on brand, technology and industrial adjustment.

A boss told reporters that since 2003, many local enterprises in Guangdong began to sell more channels, rather than just doing foreign trade or domestic sales, so as to reduce risks.

Take textile sales as an example, many enterprises sell fabrics to garment factories through the retail market, and also do export business. In addition, they sell two level fabric wholesalers to Zhejiang, Wuhan, Wenzhou and other places.

"After more than 20 years of development, Guangdong textile and garment enterprises have completed primitive accumulation, and their own funds are very sufficient. The government has always emphasized pformation and upgrading. Pure low-level processing trade enterprises have been pferred out of the Pearl River Delta earlier. However, in recent years, Zhejiang Keqiao has been developing very vigorously in textile industry, but after all, it started late, and its own funds are not very sufficient, and there are more triangular debts.

80% of the enterprises are mainly export oriented. Once the export situation is bad and the exchange rate rises, many enterprises have to go bankrupt.

Liang Guangquan said that Jiamei invested about 1000000 capital from last year to develop a high quality cotton fabric.

"This year, many sales of Jiamei fabrics declined, but sales of this new fabric doubled in June compared with the beginning of the year.

Now our R & D input cost almost accounts for 10% of the sales revenue, and the research and development is also small batch production. 10 new models can be selected by 3 customers.

It's like gambling. "

As for textile and garment export tax rebate rate increase, Liang believes that from an enterprise perspective, this move can help enterprises to digest part of the cost and slow down the temporary pressure, but it is not a radical solution.

"The fundamental improvement of the textile industry depends not only on the increase in the volume and amount of exports, but also on how to improve the bargaining power of textile products."