Textile And Leather Industry Should Be Cautious About Export Tax Rebate Adjustment

For the Chinese sports industry, the industry has reached a consensus that the domestic sporting goods industry will move towards the direction of "intensification, technological innovation and ecological environmental protection".

For the Chinese sports industry, the industry has reached a consensus that the domestic sporting goods industry will move towards the direction of "intensification, technological innovation and ecological environmental protection".

In many sports industry forums and conferences in China, people have discussed this topic countless times.

Our thinking on the development of sports industry is also based on this idea.

In China, the prominent manifestation of industrial intensive development is the gradual increase and perfection of industrial clusters.

In the entire textile and garment industry, numerous industrial clusters have been formed.

In sports, Fujian, Guangdong and other places have their own mature clusters.

Especially in Jinjiang, Fujian, with strong sports manufacturing base, the advantage of industrial clusters is obvious.

It has produced 37 national sports brands including Anta, XTEP, 361 degrees, del Hui, Hongxing Erke and so on. The sports industry occupies a large proportion in the local GDP.

In sports industry, Jinjiang is forming a perfect industrial chain.

At present, there are more than 3000 shoe making enterprises in the city, and 950 million pairs of sports shoes are produced annually, accounting for 40% of the whole country and 20% of the world's sports shoes.

At the same time, Jinjiang is an important base for national sports events.

In recent years, a total of 16 national sports teams, including China badminton team, gymnastics team, Lithuania Olympic National team, have been sponsoring 17 major sports events including CBA, national volleyball league matches, National Table Tennis Super League and so on. 76 sports celebrities have been hired and invested in more than 1 billion yuan.

Apart from the fact that industrial clusters have begun to take shape, many sporting goods companies are also accelerating the integration of high-quality resources within the industry.

The sporting goods industry in Jinjiang has attracted more capital to enter, 3 sports listed companies such as Anta sports, Xun Xing zipper, China Sports International, and sports industry employees account for about 1/4 of the total social workers.

Now, with the national sports base settled in Jinjiang, Jinjiang has clearly put forward the slogan of building China's sports city.

From an economic point of view, the industrial cluster's sharing of intangible assets such as brand and technology expertise can produce economies of scale and external economies.

Many sports companies share their interests through free riding, resulting in increased utility or reduced cost of others, which contributes to the growth of corporate brand in the region and the "carrying effect" of regional brands.

On the one hand, industrial clusters bring favorable factors for enterprises to reduce paction costs and obtain market information and technology spillover effects. On the other hand, they also increase the pressure of each enterprise to enhance their competitiveness and develop their own characteristics. Therefore, marketization promotes the development and maturity of industrial clusters.

For the Chinese sports industry, the industry has already reached a consensus that the domestic sporting goods industry will move towards the direction of "intensification, technological innovation and ecological environmental protection".

Technology flow has become a trend. For some international brands, such as Nike and Adidas, they have the leading position in products, largely determined by their product technology.

The awakening and development of domestic brands in science and technology is the most important feature of industrial development in recent period.

In sports enterprises, some leading enterprises, in order to embody their ability of independent innovation, have launched "unique skills" in scientific research.

In 2005, Anta set up the first sports science laboratory in China. Its core technology, which emphasized the function of shock absorption, was born in this laboratory.

In the sports science laboratory, there are over 50 staff members equipped with various equipment for testing shoes and clothing, and a special track to detect changes in foot movements of professional athletes and ordinary people during sports.

At present, Anta has applied for 41 patents just on its shoes.

In December 2007, the "Fujian basketball shoe industry spark technology innovation center", declared by Guo Hui (China) Limited, was approved by the Fujian provincial science and technology department and approved as the fifth batch of Provincial Industry Spark Technology Innovation Center construction unit, which indicates that the production level of the basketball shoes of Guo Hui enterprise has reached the leading level in the industry.

Over the past few years, there has been a clampdown on the readjust adjustment of the export tax rebate rate in textile industry, and it has reached its peak on the day before yesterday.

At present, the more popular version is: the textile export tax rebate rate will be raised from 11% to 13%, the export rebate rate of clothing will be raised from 11% to 15%, the import tariff of some textile machinery and automatic winding machines should be exempted, and measures should be taken to slow down the appreciation rate of RMB exchange rate moderately, and the liquidity of textile and garment industry should be appropriately solved.

In addition, it is also reported that the Ministry of Commerce has formally recommended to the State Council that the pace of RMB appreciation should be slowed down appropriately, and timely policy recommendations will be put forward according to the research situation.

If the above plan is put into practice, it will be the first time that China has adjusted the export tax rebate rate since 2006, which is undoubtedly a ray of sunshine in the plight of many textile and garment enterprises in the "cold winter".

We have visited many parties concerned and found that all sectors hold a wait-and-see attitude. They consistently agree that export tax rebates are only one part of the multiple unfavorable factors that affect export enterprises. The negative effects of exchange rate, high cost and market demand are also restricting the "magic curse" of enterprises. Simply raising the export tax rebate is not enough to relieve the survival difficulties of export enterprises.

It has been a long time for the state to brew the support policy of the textile industry. As a matter of fact, all this has long been a clue. As early as this spring fair, as the old Liliu Museum of textile and clothing exhibition area, the sparsely deserted scenes of merchants have triggered a "decline" dispute of the Canton Fair, which reflects the true reflection of the "cold" of Chinese foreign trade enterprises.

During the Spring Festival, clothing and clothing accessories fell by 4.8%, and textile yarn, fabric and products fell by 16.8%.

As the "vane" of China's foreign trade export, a series of negative factors have brought about the impact of China's export on the Canton Fair.

At the end of the Spring Festival fair, the Ministry of Commerce held a forum on textile export enterprises at Liuhua Road Exhibition Hall to listen to the views of the business representatives of Guangdong, Zhejiang, Jiangsu and other coastal provinces on the export situation.

According to the personage at that time, the small conference room was filled with the head of the Ministry of Commerce and coastal provinces and cities, and the atmosphere was very heavy. The meeting lasted from 9 a.m. till 12 noon.

Wang Yongli, deputy general manager of the provincial silk company, told reporters at the meeting that one of the three Guangdong enterprises participating in the conference was "complaining" at the meeting, and the relevant responsible persons of the Ministry of commerce also encouraged the enterprises not to lose heart at the meeting, and revealed that the state would give timely support policies.

The industry has speculated that there are various indications that the survival crisis of the textile industry has already caused high-level concern.

Although the specific supporting measures have not yet been formally promulgated, the general direction of the state's policy of moderately supporting the textile industry has been clear, and considering that the textile industry is the main body to absorb the social labor force, the focus of supporting policies is likely to fall on the small and medium-sized textile and garment enterprises.

The export data of the first half of the recent ten years of "life and death" have not been optimistic.

According to Guangzhou customs statistics, in May this year, the export of clothing and accessories in Guangdong was 2 billion 480 million US dollars, a sharp decrease of 30.6% compared with the same period last year. From May to May, the total export volume of clothing in Guangdong was 8 billion 620 million US dollars, down 21.8%. Except for January and March, the remaining 3 months were all 20% above the decline.

Obviously, China's textile industry has entered the most difficult "life and death period" in the past ten years.

And forcing many textile enterprises to go to the end is the surging production costs, labor force appreciation, raw material prices, RMB appreciation, export tax rebate cancellation plus loan interest rate increase. For the textile industry that relies on low cost, low market price and low profit, all roads are mandatory.

However, in the interview, the reporters found that the export enterprises were not optimistic about the news of the export tax rebate callbacks, but they were "a drop in the bucket".

Xie Wentao, who imports and exports textiles in Shantou, says: "the news is unbelievable now. We are waiting for the official caliber."

He said that now enterprises can only adapt to the policy, in the process of policy introduction, enterprises have been in a passive position, no new plan can only be carried out according to the old policy, and so on, and then according to the new regulations.

"Even if the export tax rebate rate will be raised to a certain extent everywhere, we do not have much hope. Simply speaking, the tax rebate can not save the export enterprises. In the case of exchange rate failure, the tax rebate is just doing useless work."

For export enterprises in the "cold winter" situation, he believes that in the current situation of enterprises, "there are too many difficulties, it is very difficult to say exactly what policy support needs to be done, so we can only say we want to do something about it."

Jiang Wei of Shenzhen Xiao Bai cashmere textile Co. Ltd. said that although raising the export tax rebate rate can not solve the plight of export enterprises, it is still early to make a good start.

But he also believes that the fundamental problem faced by enterprises is not on export tax rebates.

"The main problem remains in the exchange rate. Now every 1.6 dollars a dollar is exported to the enterprise, and the export tax rebate rate can not offset the loss gap caused by the exchange rate.

In addition, the export tax rebate is also very important, the intensity of the government's callback is very important for the survival of enterprises.

Jiang Wei believes that according to the current rate of increase, there is still a gap with the expectation of enterprises.

"In some areas, the original tax rebate rate has been less than 9%, even if the increase of 4% is not enough, the tax rebate rate of 13% is obviously a drop in the bucket."

Once the tax rebate rate rises and Guangdong benefits the most, the foreign trade department said that as a traditional labor-intensive industry, the textile and garment industry has played a huge role in solving the problem of labor employment. The local government has also strongly appealed and reflected it.

But before the formal introduction of the policy, it is not easy to speculate.

"In the open statement of the Ministry of Commerce, we only disclosed that there will be support measures. Many people will understand that the export tax rebates have been raised.

In fact, there are many ways to support, in addition to tax rebate, and customs clearance convenience, foreign trade means tilt and other comprehensive methods, tax rebate is the most intuitive and most powerful.

But he also said that Guangdong, as a major export province of clothing, is the most affected and the most influential one. If the export tax rebate is raised, the positive effect will be obvious.

"Why did textile and garment exports decrease by 11% in the first half of this year, but Guangdong dropped 20% to 30% in a few months? The main reason is the market structure.

Guangdong textile and clothing are mainly exported to the United States and Hongkong. Therefore, the depreciation of the US dollar and the reduction of market demand caused by the US subprime mortgage crisis are the biggest blow to Guangdong's clothing export enterprises.

In contrast, the Yangtze River Delta region developed relatively early on the European market and was less affected.

Conversely, once the state support policy is introduced, the degree of improvement in Guangdong will be more obvious. "