The State Should Promptly Introduce Policies To Combat Losses In The Textile And Garment Industry.

The China Textile Industry Federation informed the outside world about the operation of the textile industry in 2012 1-4 in May 31st.

In the 1-4 month, the textile industry of all over the scale achieved 1 trillion and 670 billion industrial output value, an increase of 13% over the same period last year, an increase of 17% over the same period last year, and a loss of nearly 1/5 of the industry in terms of operational efficiency. The loss margin increased by 120%, and sales profit was only 4.5%, down 0.66 percentage points from last year, and the decline in production mainly came from domestic sales and the weakness of the external demand market.

According to Sun Huaibin, spokesman of China Textile Industry Federation, the total domestic sales increased by 15.6% in 1-4 months this year, and the growth rate dropped by 7.9 percentage points. The real growth rate of retail sales after deducting price factors was only 11.6%, compared with previous years.

The growth rate of retail sales will generally be 7-8 percentage points higher than the total retail sales of the whole society. The two curves basically coincide this year, which indicates that the slowdown in domestic sales is very serious.

Sun Huaibin said that domestic sales have carried seven to 80% of the capacity of the textile industry, and the domestic demand market is the most important support for the textile industry this year. It is estimated that the domestic demand will grow by about 15% in the year. He also said that if there was no domestic demand market this year, the textile industry would be miserable.

The export situation is more severe in terms of external demand.

The total export volume of textiles and clothing in China in the 1-4 months was 71 billion US dollars, up 1.07% from the same period last year. The growth rate of the whole country was 19% last year.

Due to the lack of market demand and the spread of cotton prices at home and abroad, China's share of the international market share of some textiles and garments is being pferred to other countries.

In 1~3 months this year, China's textile and apparel market share in the United States and Japan was 35.58% and 72.03% respectively, down 4.55 and 2.92 percentage points from 2011, respectively, of which the market share of cotton products decreased significantly.

From the demand level of textile and clothing, because of the uncertainty of European sovereign debt, the EU unemployment rate is high, the consumption lacks basic power, and the demand growth will be weak for a long time. Although the United States and Japan's consumer market are in a steady trend, there are still many uncertainties.

It is estimated that in 2012, if domestic and foreign cotton prices are not narrowed, the export situation of China's textile and clothing will continue to be severe.

To ensure the smooth operation of the textile industry, the China Textile Industry Federation recommends that the state adjust and introduce relevant policies in a timely manner to optimize the external environment for the development of the textile industry. Meanwhile, the industry itself should also speed up pformation and upgrading, enhance international competitiveness and further adapt to market changes.

It is suggested that measures should be taken in time to narrow the difference between domestic and foreign cotton and speed up the reform of cotton circulation system.

To solve the problems related to tax system and tax rate, we should solve the "Gao Zheng low deduction" tax system which has long troubled the development of cotton spinning, cocoon silk and linen textiles.

We should reduce the bank loan cost of SMEs, pay close attention to the difficulties of SMEs, improve the institutional mechanism of SME financing, alleviate the financing problems of textile SMEs, and reduce the risk of textile enterprises' capital chain.

To speed up the pformation and upgrading of the textile industry, we should accelerate the pformation and upgrading of the textile industry in accordance with the requirements and deployment of the "12th Five-Year plan" and the textile power platform, and build a system and mechanism suitable for further development of the textile industry, so as to enhance the added value of the products and enhance the international competitiveness of the industry.

Encourage textile enterprises to implement technological pformation and technological innovation, set up a model of the industry, and create an external environment conducive to further promoting pformation and upgrading of textile enterprises.