New proposals from govt may assuage textile & garment industry

11 Jun '08

2 min read

The textile and garment industry of China is facing a grim situation since a long time and has affected exports to quite an extent. As a result of which, the Government has decided to take some encouraging measures that will bring relief to the textile enterprises of the nation.

Authoritative sources suggest that, the newly established Ministry of Information has recently issued 'Letter of Views', that aims to resolve the gloomy condition which has surrounded the textile industry in recent times.

The letter has pooled views from the National Development and Reform Commission, the Ministry of Commerce, the Ministry of Finance, the China Textile Industry Association, the China Cotton Association, the People's Bank of China, and other Ministries and Units.

Some of the measures that are addressed in the proposal include increase of textile export tax rebate rate from 11 to 13 percent, garment export tax rebate should be augmented from 11 to 15 percent.

Import tariffs on imports of textile machinery and automatic winders should be abolished, capital liquidity problem of textile and apparel industry and other issues should be appropriately resolved.

Sources close to the department also disclosed that the "Views", aims at addressing specific difficulties of an industry that is on the downslide and also recommends that the state should intervene to moderately slow down the pace of RMB appreciation, with suggestions that this issue merits special attention.

Fibre2fashion News Desk - China

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