'Textile export goods should apply for zero rating' – Mr Jinahua

22 Apr '09

2 min read

The Chinese Assistant Minister of Commerce, Lu Jianhua expressed at a press conference on the sidelines of the China International Garment Textile Expo 2009 in Dalian, that after the introduction of a series of supportive policies for China's textile industry, the textile industry has shown signs of improvement.

But, he said, the situation is still grim due to weak external demand and the Ministry of Commerce is working with relevant government departments and was reviewing the situation closely and new policy measures will be determined on the basis of the situation prevailing at that juncture.

He said, at present China's textile export tax rebate rate is only 16 percent, while value-added tax (VAT) is 17 percent, therefore, he added by saying that goods meant for export, should apply for zero-rating according to international practice.

He said, “Volume of business at the ongoing Canton Fair has, but still had a ray of hope considering the number of enquiries that had been generated though conversion rate was going a bit slow and that his ministry was keeping a close eye on the same and any follow-up support policies for the textile industry will depend on the situation.

When asked about the problems of financing difficulties faced by foreign trade enterprises, Lu Jianhua said that the Ministry of Commerce is communicating with the CBRC and other related departments and the current plight and difficult position would soon be alleviated.

Fibre2fashion News Desk - China

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