Textile And Garment Industry Export Tax Rebate May Be Raised, Is Expected To Enhance The Performance Of Listed Companies.

Internal and external troubles forced export tax rebate policy to accelerate.

The news about export tax rebate has been around for a long time, and in recent years, with the leaders of the state and relevant ministries and commissions leading to the intensive research of export enterprises, listening to the pain of enterprises has reached its peak.

We believe that the export tax rebate policy will be accelerated by internal and external troubles.

If we take stock of the operation of the textile and garment industry in the first 5 months of this year, it is easy to see that the "internal and external troubles" undoubtedly represent the true picture of the industry's current situation.

1) in the domestic aspect, the acceleration of RMB appreciation, the tightening of monetary policy and the reduction of export tax rebate reduced the profit margins of enterprises. The price growth of main raw materials and energy resources all exceeded the increase of factory and retail prices, and the new labor contract law came into effect, resulting in a substantial increase in the per capita labor remuneration of the textile industry, and the export competitiveness of enterprises was continuously weakened.

2) on the international side, with the subsequent release of the subprime mortgage crisis and the continuous rise of international oil prices and grain prices, the growth of consumer spending on clothing in developed countries, especially in the United States, has been greatly slowed down. The market demand is obviously weakening. Considering the factors such as trade protectionism and fierce international competition, the export growth of China's clothing products this year has shown signs of obvious slowdown: in the first five months of 2008, China's total exports of textiles and clothing were 71 billion 316 million dollars, up 12.42% over the same period last year.

Among them, export clothing and accessories were 37 billion 643 million US dollars, up 7.03% from the same period last year, the increase is lower than the national average level, and 11 percentage points lower than the same period last year.

With the sharp increase in domestic cost and the sharp decline of international demand, the textile industry's business indicators have declined sharply. As of May 2008, the total loss of the textile industry expanded to 22.85%, the industrial output value increased by 17.27%, and the profit growth rate dropped to 8.3%, which was slower than that of last year's total industrial output value of 23.95% and profit 43.86%.

If the state does not introduce relevant support policies again, this slide will become increasingly fierce.

Despite the fact that the textile industry can not get the reason why the export tax rebates should not be increased, considering that the textile industry involves 21 million of the direct employment population and 100 million of the indirect employment population, the large number of bankrupt enterprises will inevitably lead to a large increase in the number of unemployed people. There are many social factors involved in the industry. It is not difficult to infer that if the relevant preferential policies are introduced by the state, it will be more based on social considerations and will not be constrained by financial factors alone.