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Textile Manufacturers Call For Tax Rebate And Exchange Rate Linkage Mechanism

2008/4/28 16:40:00 17

Textile Chamber Of Commerce Called For The Establishment Of A Tax Rebate And Exchange Rate Linkage Mechanism.

Since 2007, China's textile and garment export growth has slowed down. The total export volume of textiles and clothing was 37 billion 440 million US dollars in 1~3 this year, an increase of 19.5% over the same period last year.

Fan Min, chief analyst of the first textile network, said that although the world's demand for Chinese textiles still exists, but under the influence of many factors, the survival environment of Chinese textile enterprises is increasingly grim, and the slowdown in export growth is inevitable.

He predicted that China's textile and garment exports could hardly achieve more than 20% growth last year, with an estimated growth of only about 10%.

Although the US subprime mortgage crisis and the world economic cycle have a greater impact on developed countries and regions, developed countries and regions are still our major export markets for textiles and clothing.

This Canton Fair has accounted for 37.3% and 14.5% of exports to the EU and the United States respectively, accounting for more than 50% of the total volume of pactions, including a 25.5% decline in volume in the US, 16.4% in volume to the EU, 9.3% in volume in Japan, 17.2% in volume in Australia, 12.9% in volume in Russia, 3.5% in volume in Canada, 13.9% in the Middle East volume and 5.8% in ASEAN volume.

However, the expansion of export volume in some emerging market countries and regions, such as Latin America, has increased by 24.8%.

Many exhibitors reflect that the number of merchants from African countries in the Canton Fair has decreased.

The chamber of Commerce believes that the reasons for the decrease of African businessmen are: first, the price of textile and clothing in China is rising; two, the competitiveness of the third world countries is being improved.

Xu Jian's tax rebate and exchange rate linkage mechanism

The head of the chamber of Commerce said that the decrease in the number of merchants seems to be "less popular" than the past, but the quality of the merchants is basically not affected.

More prominent is the fabric shop. Many enterprises reflect that the number of customers who have extensive enquiries has been significantly reduced. In general, they are substantive negotiations.

At present, the appreciation of RMB has had a substantial impact on the textile and garment industry.

To this end, the China Textile Import and Export Chamber of Commerce suggested that an export tax rebate and RMB appreciation linkage mechanism should be established, that is, the proportion of export tax rebates and RMB appreciation will be raised simultaneously in a certain proportion. The tax rebate increase can lag behind in time, leaving room for survival and development for the textile and garment enterprises that have not yet got rid of the labor-intensive characteristics.

From the case of the trade in the Canton Fair, we can see that the enterprises are looking for measures in the links of export quotations, signing and shipping, so as to avoid the loss caused by the appreciation of RMB as far as possible, and not sign long-term contracts as much as possible.

A person in charge of Guangdong silk group told reporters that because of the difference in business culture, European merchants could barely accept the cost of part of the appreciation of the renminbi, while American merchants had little or no room to spare.

At the same time, the rise of textile and garment industry in the third world countries is gradually weakening China's comparative advantage.

A large textile and garment export enterprise in Shanghai has calculated an account. For various reasons, the energy cost of enterprises has increased by 20%, the labor cost has increased by 23%, the cost of raw materials has increased by 10%, and the further compression of the profit margins has made the enterprises feel the existence of business risks.

Recently, from the China Textile Import and Export Chamber of Commerce, the total export volume of textiles and clothing in the 103rd Canton Fair was 4 billion 990 million US dollars, down 11.4% from the previous year, down 14.5% from the previous one.

However, the responsible person of the chamber of Commerce indicated that the total volume of textile and garment export pactions in the Canton Fair fell, and that the export of textile and garment exports in China continued to maintain a relatively slow growth trend.

The chamber of commerce also called for the establishment of a tax rebate and exchange rate linkage mechanism to reduce the impact of RMB appreciation on SMEs.