Textile industry looks forward to the dawn

The textile industry looks forward to the dawn The textile industry looks forward to the dawn The textile industry is currently in a difficult period of internal and external troubles. Some people optimisticall…

The textile industry looks forward to the dawn

The textile industry looks forward to the dawn
The textile industry is currently in a difficult period of internal and external troubles. Some people optimistically regard it as the darkness before dawn. How many companies have fallen silently in the darkness, and how many surviving companies are looking forward to dawn in the darkness. .
Starting from August 1, the export tax rebate rate for some textiles and clothing will be increased from 11% to 13%. This good news will undoubtedly make some textile companies see the light of day.
Since last year, the textile industry has been plagued by many unfavorable factors – RMB appreciation, export tax rebate reduction, raw material price increases, implementation of the new labor contract law, environmental protection restrictions, the US subprime mortgage crisis reducing international market demand, etc.
These unfavorable factors have caused the textile industry to face a serious survival crisis. According to recently released statistical data, the cumulative loss of the textile industry from January to May 2008 reached 9.958 billion yuan, a substantial increase of 2.972 billion yuan compared with the same period last year, and a year-on-year increase of 42.54%. The growth rate of losses in the first two months of this year was 37.20%, and the growth rate of losses from January to November last year was only 14.34%. It shows that under the influence of drastic changes in the internal and external environment, the overall profit decline of the textile industry is indeed accelerating.
According to a survey by the Textile Chamber of Commerce, many companies that are in the process of passive adjustment have suffered a greater impact due to pressure from the external environment. Especially for some small and medium-sized enterprises, production reductions, layoffs, and work suspensions have frequently occurred.
Although many textile companies prefer to regard the current predicament as “darkness before dawn.” In their view, the impact of this round of the U.S. subprime mortgage crisis should gradually dissipate within one or two years. By then, the Sino-U.S. textile agreement has expired, and China’s textile and apparel exports will definitely see the light of day again. But we should also clearly realize that the darkness in front of us is long and needs to be “beared through”. Only enterprises that can “persist” until the end can see the dawn. In this process, a considerable number of small and medium-sized enterprises will fade away forever. Competition arena.
The increase in the textile export tax rebate rate is obviously a timely helping hand extended by the government when small and medium-sized enterprises are facing unprecedented difficulties. It may give some companies hope of survival.
For export-oriented enterprises, a one percentage point adjustment in the export tax rebate rate is equivalent to adding 1% of the company’s total exports directly to the company’s profits. Not only that, it can also effectively slow down the competitive pressure on the domestic market caused by “export sales to domestic sales”.
However, what is worrying is that due to the lack of brands and low added value of my country’s textile and apparel products, exports lack independent pricing power. If the export tax rebate rate is raised, foreign buyers will take the opportunity to lower prices, which may eventually lead to the profits gained by enterprises from increasing export tax rebates being misappropriated by foreign buyers. Therefore, if we want to truly overcome the darkness and embrace the future of the textile industry, technological innovation and industrial upgrading are the ultimate solution for the textile and apparel industry.
As Vice Minister of Commerce Gao Hucheng said in an interview with media reporters not long ago, stabilizing policies has become the consensus of relevant departments, but companies must also assess the situation and speed up adjustments.
At present, what textile enterprises need to do is still to hone themselves in anticipation, improve their independent innovation capabilities, and usher in the dawn as soon as possible. ZjaHhY


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