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Clothing cos urged not to depend on Govt policies
Aug '08
Recently, it was reported that the Chinese Government had issued several favorable tax policies to boost the establishment of domestic clothes brands.

However, some insiders said that concrete policies had not yet been implemented. They said that, besides other policies, Government was still planning to issue some tax policies.

Industry insiders said that most of the Chinese clothes brands belong to the low-end or middle-end levels and enterprises still specialize in OEM. Less than 10 percent of Chinese clothes manufacturers are able to enter their brands into the global market. So, the added value of Chinese clothes products has been very low.

Considering the above factors, Chinese companies cannot solely depend on Government policies to recover their status. Infact, these schemes may not help much.

They stressed that the current problems in textile industry are due to trade situations outside China as well as internal factors like RMB appreciation, low value-added products, products failing to meet international quality standards and so on.

Thus, experts said that instead of eagerly awaiting new Government policies and depending on them, textile industry should get together and take bold actions to overcome measures to overcome problems and rise higher.

Fibre2fashion News Desk - China

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