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

President Donald Trump; Courtesy: White House

Textiles | On 24th Jan 2017

US sets ball rolling for withdrawal from TPP

President Donald Trump has set the ball rolling for withdrawal of the ...

Textiles | On 24th Jan 2017

Indian cotton consumption estimated at 290 lakh bales: CAI

The domestic consumption of cotton during the crop season 2016-17...

Stefano Gallucci (left), CEO, Santex Rimar Group, and Tamer Hasbay, President, Has Group; Courtesy: Santex Rimar

Textiles | On 24th Jan 2017

Santex Rimar to market all Has products globally

Italy based Santex Rimar Group has signed an agreement with Turkey...

Interviews View All

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Steve Cole
Xerium Technologies

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search