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Home / Knowledge / News / Textiles / Lean phase of textile industry

Lean phase of textile industry

12
Nov '08

Textile industry in China has been going through a rough patch since the beginning of this year, and the situation has only worsened.

In past few months, Chinese Government has introduced some policies to stimulate domestic economy, such as lowering deposit and lending rates, increasing investment to promote local demand and modifying rigid limitations of bank credit, in order to actively cope with the global financial crisis.

After purchasing 220,000 tons Xinjiang cotton for the first batch of state reseve cotton, the state bought the second batch of 1 million tons from both inland and Xinjiang. It is reported that the state will continue to increase cotton purchase volume in the future. On November 10, Zhengzhou cotton futures finally rebounded from bottom, curbing a downtrend of past few days.

However, textile and garment transactions were not optimistic at third phase of 104th Guangzhou Trade Fair that was held during November 2 - 6. Depreciation of the Euro and US Dollar is one of the key problems faced by enterprises while receiving orders.

Besides, as international economic situation weakens further, the sales are inevitably to shrink as well. At the forum, aiming to ease export difficulties of labor-intensive businesses such as textiles, recently organized by the Ministry of Commerce, enterprises strongly demanded rise in export tax rebate rates so that it reaches 17 percent.

Fibre2fashion, News Desk - China

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