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

Pic: Shutterstock

Apparel/Garments | On 19th Aug 2019

Hanoi considers safeguards for apparel sector under CPTPP

Vietnam's ministry of industry and trade is drafting a circular to...

Pic: Shutterstock

Textiles | On 19th Aug 2019

Swedish TMAS helps members quickly react to market changes

The Textile Machinery Association of Sweden (TMAS) offers member...

Pic: NRF

Retail | On 19th Aug 2019

July sales for clothing down 1.6% y-o-y in US: NRF

Sales for clothing and clothing accessory stores were down 1.6 per...

Interviews View All

Milind Khandwe, Hindoostan Innovation Centre

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Textile industry, Head honchos

Textile industry
Head honchos

Athleisure is the current buzzword in fashion

Headhonchos, Indian fashion industry

Headhonchos
Indian fashion industry

Organic the first choice of any environment-conscious person

Fiorella Cattelan,

Fiorella Cattelan

With flexibility and versatility, Dettin strives to meet the specific...

Amol Bhagwati,

Amol Bhagwati

A textile finishing solution provider, Inspiron Engineering Private...

Kuldeep Pareek,

Kuldeep Pareek

Italian company Schoch Reeds has been producing high-quality weaving reeds ...

Isabel Herranz, European School of Business & innovation

Isabel Herranz
European School of Business & innovation

Cutting-edge ideas like the Internet of Things and artificial intelligence ...

Mark Paterson, Technical Absorbents Ltd

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Daniel Kaye, RocketLife

Daniel Kaye
RocketLife

<div>RocketLife, an award-winning developer of breakthrough visual...

Wendell Rodricks, Wendell Rodricks

Wendell Rodricks
Wendell Rodricks

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

Igor Chapurin, Chapurin

Igor Chapurin
Chapurin

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

Adriano Goldschmied, AG Jeans

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

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

Leave your Comments


August 2019

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

news category


Related Categories:

Advanced Search