China’s implementation of policies to expand domestic demand benefits the textile industry

In the context of the increasingly intensifying impact of the international financial crisis, the State Council of China promptly introduced ten major measures to expand domestic demand, and various departments and localities also launched a series of corresponding supporting measures. Through these measures, we can find that some important industries in China will usher in important development opportunities in response to the crisis and in the implementation of the national policy of expanding domestic demand.
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                                                                                                                                  Textile industry: Export tax rebate adjustment to “hedge” the challenge of decline
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Policy points: Reduce the value-added tax collection rate for small-scale taxpayers to 3%; further increase the export tax rebate rate for some labor-intensive products from December 1, 2008; strive to maintain stable growth in exports and support agriculture, light textiles and other industries Export competitive labor-intensive products; reasonably expand the scale of credit and increase credit support for small and medium-sized enterprises.
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“ Whether it is the country’s ten measures to expand domestic demand or the adjustment of relevant specific economic policies, it is tantamount to providing timely help to the textile industry in a difficult situation.
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As China’s main export-earning industry, most companies in China’s textile industry have encountered difficulties due to various factors since 2008. In the first nine months of 2008, China’s clothing exports were US$87.085 billion, a growth rate that was 21.18 percentage points lower than the same period last year.
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According to relevant policy adjustments, the export tax rebate rate for some labor-intensive products will be further increased from December 1. The adjustment involves a total of 3,770 products, accounting for approximately 27.9% of all export products. Sun Huaibin, spokesperson of the China Textile and Apparel Industry Association, said that the export tax rebate rate will be increased by 3 percentage points in two installments, which will enable textile export companies to reduce losses by about 8 billion yuan within the year, and can “hedge” a small part of the weak international market demand since 2008. Export losses caused by RMB appreciation.
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Not only that, the value-added tax transformation reform will also significantly benefit textile companies. Xu Wenying, vice president of the China Textile Industry Association, believes that the value-added tax reform is of great significance to reduce the burden on textile enterprises and encourage technological progress and industrial upgrading of enterprises.
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But experts also pointed out that most textile companies are currently facing serious difficulties, and there is still a long way to go to achieve a real breakthrough in the industry.