Eight Chinese ministries to jointly promote silk industry

24 Oct '13

2 min read

Eight Chinese ministries and departments, including the Ministry of Commerce, the Ministry of Science, the Ministry of Finance, the Ministry of Agriculture, the Development and Reform Commission, and the People’s Bank, have jointly formulated a plan to further promote the healthy development of the silk industry in China.

The plan aims at supporting the transformation and upgrading of the cocoon and silk industry. It states that a lot of companies are seeking to upgrade, but the silk industry in China is currently witnessing a general downturn in business and is passing through very difficult circumstances.

Whether it is equipment renewal, introduction of new equipment or technological innovation, it requires a policy that strongly supports capital aspects.

Hence, the plan aims to gradually expand the central budget to support the development of the silk industry, by making efforts to support the transformation of mulberry, pest control, introducing technological innovation, energy conservation, development of marketing channel, brand building, etc.

The policy lays emphasis on cooperating with relevant channels to enhance sericulture breeding base.

At the same time, investment and financing mechanism would be improved. Moreover, qualified enterprises would be actively supported to adopt Silk listing and issuance of debt financing instruments and other means to raise funds.

Further, support would be provided for scientific and technological research in silk design to creative enterprises and small and medium entrepreneurs.

The policy would allow private capital and foreign investment in cocoon silk industries.

The policy-oriented financial support would be extended by financial institutions within the business scope and approved by the state.

Commercial financial institutions should further improve financial services, in accordance with risk control, sustainable business principles, to comply with the conditions to provide financial support to cocoon silk enterprises.

Lastly, the objective is also to promote various types of financing guarantee institutions in accordance with commercial principles to increase silk research and service organizations and silk creative design enterprises.

Fibre2fashion News Desk - India

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