How Can We Save The Textile And Leather Industry In The Cold Winter?

With the decline of export tax rebate, the acceleration of RMB appreciation and the increase of labor cost, the textile industry is under heavy pressure. At the same time, textile prices and textile enterprises are in a state of falling down, but the pressure on textile enterprises is increasing. According to data released recently by the National Bureau of statistics, China's factory price of industrial products (PPI) rose 8.2% in May, the highest in recent years. Among them, the prices of food, general daily necessities and clothing rose by 11%, 3.9% and 2.4%, respectively. From the statistical data of different varieties, almost all the prices of chemical products have increased in varying degrees, while polyester filament has decreased by 4.6%. In addition, China's consumer price  CPI rose 7.7% year-on-year in May. It is still at a high level. Among them, the price of food increased by 19.9%, while the price of clothing decreased by 1.5%, among which, the price of clothing decreased by 1.6%. At the same time, compared with the national cotton futures market in 2008, the contract price of cotton decreased by RMB 1417 / T compared with that of last month in Zhengzhou, with a decrease of RMB 1417 / T in the National Development Committee. According to the national cotton market monitoring system, by the end of May, the average lint sales rate of cotton enterprises was 75%, a year-on-year decrease of 8.3 percentage points. The main reason for the slow sales is that textile enterprises are generally short of funds, reducing the inventory of raw materials such as cotton and so on. In addition, China's textile exports increased by 14.4 billion U.S. dollars. From January to May this year, China's textile and clothing exports reached 66.2 billion US dollars, a year-on-year increase of 15.4% and a decrease of 0.2 percentage points. Textile exports increased by 12.87% to 12.87 billion U.S. dollars last year. "The main reason for the decline in the growth rate of textile production and export is that the pace of RMB appreciation has accelerated since last year, the cost of labor and raw materials has increased, the export tax rebate rate has been lowered, and the international economic growth has slowed down, which has made textile development difficult." In this regard, the relevant person in charge of the national development and Reform Commission said so. Since September 15, 2006, China has reduced the export tax rebate rate of textiles from 13% to 11%. This is the second reduction after the reduction of 4 percentage points from 17% in 2003. On June 19, 2007, the export tax rebate rate of clothing, bags, toys and other products was reduced from 13% to 11%, and that of viscose fiber was reduced to 5%. So far, the tax rebate rate of textile and clothing industry export products (except viscose fiber) is 11%. Under the premise of current inflation, the rise in costs, and the slowdown in China's textile and clothing exports since this year, have brought a very big blow to the textile industry. Some small and medium-sized textile enterprises are on the verge of bankruptcy. The situation of the textile industry directly affects the cotton market. According to the May cotton market monthly report of the national development and Reform Commission, the national yarn production in May was 1.9 million tons, a year-on-year increase of 12.8%. From January to May this year, the total national yarn output reached 8.34 million tons, an increase of 11.6% over the same period of last year, and the growth rate decreased by 9%. From September last year to May this year, China's yarn output accumulated 15.45 million tons, a year-on-year increase of 11.7% and a decrease of 8.6 percentage points. At the same time, cotton imports are also falling. According to the customs statistics, in May, China imported 240000 tons of cotton, an increase of 39000 tons or 19.4% over the same period of last year, a decrease of 232 thousand tons or 8.8% compared with the previous month, and lower than the average level of 275000 tons in recent three years. The import of 1.03 million tons from January to May was 108000 tons higher than the same period last year, but it was also lower than the average level of 1.2 million tons in recent three years. "The textile industry is now suffering from the most difficult year in nearly a decade." For the status quo, there are textile business owners so lamented. It can be said that "the wind is uneven, the waves are not quiet.". In view of the current difficulties faced by the textile industry, in mid June, a news appeared in a media that the newly established Ministry of information and industrialization has recently issued an opinion letter aimed at solving the current difficulties faced by the textile industry and is actively soliciting opinions from all parties. The "opinions" include that the tax rebate rate of textile export will be reduced from 11% to 13%, that of clothing export will be reduced from 11% to 15%, and that of cotton import sliding standard tax will be reduced to 570-357  which is equivalent to reducing from 5% to 3%. It has been implemented since June 5 to exempt some textile machinery and automatic winders from import tariff; measures should be taken to moderately slow down the appreciation rate of RMB exchange rate; and appropriate measures should be taken to solve the textile and clothing industry Liquidity and other aspects of the content. Obviously, if the suggestions in the opinions are really supported by the government, it will be a shot in the arm for textile enterprises. However, at present, when everything is just speculation, the textile industry still has to experience "severe cold" suffering.