Home / Knowledge / News / Textiles / Further tax breaks to have little or no meaning
Further tax breaks to have little or no meaning
01
Dec '08
Although not being part of the country's economic lifeline, China's textile and light industries create a large number of jobs, so a series of major difficulties experienced by these two sectors have caused increasing concern within the Chinese government. A few days ago, the State Council executive meeting identified six policies and measures to address their difficulties. The policies first mention the need to develop revival plans for several industries, including light and the textile industry.

No doubt, China's textile industry has experienced unprecedented difficulties. According to data released by the General Administration of Customs, China's textile and garment exports in the first ten months of this year amounted to US $153.717 billion, up 5.89 percent year-on-year, but growth rate fell 5.19 percentage points from the first half of this year, and down 13.84 points year-on-year, a 6-year low. By removing the impact of the Spring Festival in February, China's textile export growth rate has declined for 9 months, depicting a worsening trend in exports from January to date.

In October this year, exports of textiles and garments scored US $16.75 billion, up 9.32 percent year-on-year, but down by nearly US $13 billion from the previous month or 6.94 percent. At present, the country has attached great importance to the situation and has frequently introduced policies to enhance confidence and support those enterprises in plight. Though the new sops have to a certain extent alleviated the difficulties of manufacturing sector, the status quo of their survival has not changed completely.

Retention of jobs has become very important in these turbulent times, however for a large number of small enterprises in the two sectors, it will be difficult to implement support policies for employees if the situation worsens further. Some experts have pointed out and admit that at present the main problem of slowdown in demand does not rest at the doors of China.

With declining textile demand from Europe and the United States, it will be no good for China to introduce more policies. It will have very little meaning to further increase export tax rebate rates, because half of the proceeds brought about by the increase, will go into the pockets of the buyers, so the best way is for the Renmibi to depreciate appropriately.


Fibre2fashion News Desk - China

Must ReadView All

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Pakistan's Finance Minister Mohammad Ishaq Dar presenting Budget 2017-18 in National Assembly in Islamabad on May 26. Courtesy: PID, Pakistan

Textiles | On 27th May 2017

Pakistan Budget 2017-18 proposes 4 new measures

To support the textile sector in Pakistan, finance minister Mohammad...

Textiles | On 27th May 2017

Indian exports can touch $325 bn in 2017-18: FIEO

Indian exports are on upward trend in last few months as the country...

Interviews View All

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search