Home / Knowledge / News / Textiles / Textile sector still hopeful of full refund of export tax rebates
Textile sector still hopeful of full refund of export tax rebates
12
Jun '09
China's textile industry has been looking forward to a full refund of export tax rebates as early as possible, but the latest increase in tax rebate rates does not include textiles and garments. In this regard, Zhao Chuanxiang, President of the Textile Industry Association of Shandong Province says that, “Since Shandong province has a very large textile export base, we are very much hopeful on that account”.

Zhao points out that due the slowdown in global markets and the financial crisis, demand from international market has significantly reduced and at the same time competition is increasing and pressures from trade protectionism have further aggravated the situation and with the combination of all these factors, Shandong's textile industry faces higher risk of downtrend, at least in the near future.

In Shandong's textile and garment industry, most enterprises are small and medium-sized units mostly surviving on low-level profits, due to which they have difficulty in accessing liquidity, due to which most of these enterprises are facing financial problems. In China, export tax rebate plays an important role for export enterprises to maintain their shares in international market.

For example, every increase of one percentage point of export tax rebate rate will result in an increase in 7.89 percent to total profits of the textile and garment industry. Protecting exports, does not simply mean to maintain market share, it should have more meaning in protecting export enterprises and employment.

Relevant data shows that labour cost is US $0.22 an hour in Bangladesh, US $0.33 an hour in Cambodia, US $0.38 an hour in Vietnam, US $0.51 an hour in India, while in China labor cost is US $1.08 an hour. China's labour cost competitive advantage in the textile and garment enterprises has decreased evidently, due to which part orders of Europe and the United States have shifted to other countries.

A report released by a global business consulting firm points out that China has lost its status as the “Lowest manufacturing cost base” in the world market. The report says that manufacturing cost between China and the United States is moving closer and as of date, manufacturing cost of a Chinese factory is only 6 percent lower than that of a US based enterprise.

Fibre2fashion News Desk - China

Must ReadView All

Courtesy: BGMEA

Apparel/Garments | On 27th Feb 2017

'Brands & buyers should help Bangladeshi factory owners'

Brands and buyers should come forward to help factory owners in...

Apparel/Garments | On 27th Feb 2017

Myanmar sets up new committee to revise minimum wage

The Government of Myanmar has set up a new committee, replacing an...

Courtesy: PT Indonesia Taroko Textile

Textiles | On 27th Feb 2017

Taiwan's Lealea to buy Tarako textile plant in Indonesia

Taiwan based textile manufacturer Lealea Enterprise Company, one of...

Interviews View All

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Kevin Nelson
TissueGen

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Sonam & Paras Modi
SVA

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

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

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
February 2017

February 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