China’s cotton textile industry enterprises shoulder the enormous pressure

China’s Textile Industry Association, vice president of the China Cotton Textile Industry Association, the British Xu China Cotton Textile Industry Association in three of six meetings of the Council of the whole process, and always will be able to feel the enormous business shoulder the pressure. While these proposals are old topic, but this year, more companies feel able to rise to hope that the government’s urgent attention.

Recently, the analysis of the situation and the development of the textile industry, “1 / 3” and “2 / 3” is a higher frequency of the two, 1 / 3 enterprise sectors driving profitable growth, 2 / 3 enterprise on the verge of a loss, this reality has been Well-known. From the National Bureau of Statistics data, this is true, however, it reflects the business, whether it is 1 / 3 of the backbone, or 2 / 3 of the vast majority of the actual profit margin than statements of the show was as optimistic.

For 12 years the most difficult year

In 2007, China’s cotton textile industry, the overall situation is still encouraging. China Textile Industry Association, China Cotton Textile Industry Association, the British Xu in China Cotton Textile Industry Association Council on three of six made by the report, cited a series of data, they can prove that last year China’s cotton spinning industry economy Is benign.

Last year, China’s cotton yarn production companies a total of 20,000,000 tons, up 14.7 percent; a total cloth production 66,000,000,000 m, up 10.2 percent; yarn and cloth production growth rate has come down to a greater degree.

According to the National Bureau of Statistics of the cotton spinning industry statistics 10,089 enterprises, in 2007 from 1 to Nov. industry-wide main business income of 720,200,000,000 yuan, up 23.54 percent; total profit 28,280,000,000 yuan, up 42.7 percent, the annual profit of 300 Billion yuan, 3.93 percent for the profit margin, an increase of 0.53 percentage points.

Last year, the completed investment in fixed assets 75,830,000,000 yuan, up 21.7 percent, increase over the significant downturn in the ring, “none of the elite” in a substantial increase in the ratio. Cotton textiles and clothing exports a total of 72,063,000,000 U.S. dollars, up 28.69 percent. … …

These are all evidence of a thriving industry, the development of the senses. But this is only the macro, and as individuals, and frankly, many enterprises are now very sad day. China Cotton Textile Industry Association in three of six on the Council, a number of companies mentioned in the same place in the spring of 1996, although the situation in different Bishi most of the enterprises are state-owned enterprises, but the degree of difficulty is similar.

Year in 2008, China’s cotton textile industry has ushered in 12 years, the most difficult year.

Industry-wide 2 / 3 of the actual business profit margin is only 0.62 percent, which is a rather depressing figures, but according to business reflects the actual situation worse. Wuxi, a cotton spinning business executives said that the number of the 0.62 percent on the high side, some enterprises in order to continue to secure bank loans, accounts do not have time to count the cost of depreciation, and so on. He cited as an example, 40 companies in general combed yarn is priced at 26,000 yuan / ton, with the cost of cotton was 20,000 yuan / ton, excluding transportation costs and little corporate earnings, in Wuxi area of loss-making enterprises has reached more than 60% .

Even those enviable 1 / 3 Enterprise, the truth did not show as a red fire. Some companies that reported their profit margins, include real estate, securities and other business income. To the central region, a key enterprises, for example, last year, their total profits of 1.8 billion yuan, up 110 percent, but its leadership candidly, including the stock proceeds, the main business income was flat with the previous year.

Concerned about the 2 / 3 in support of the people’s livelihood industries

The textile industry is labor-intensive industries out of people’s livelihood, and agriculture and the close-knit cotton spinning industry is well-deserved.

Very difficult for the exact statistics of the cotton spinning industry of the number of employees, more difficult to estimate, as well as other cotton farmers and cotton-related industries number, but what is certain is that if 2 / 3 of the closure of enterprises, there will be tens of thousands of people lose their jobs. Shandong Wei Bridge Venture Group, said Zhang Ping, Wei bridge is now 160,000 workers, who are largely from rural areas. Cotton textile industry to address the role of employment has been Needless to say, is why many experts believe that the cotton textile industry in fact represents the interests of farmers. Now the policy of suppressing the deep processing industry of agricultural products, not to protect farmers.

It is worth noting that last year many farmers are feeling pretty good, of course, thanks to China’s cotton textile industry.

In the light of our current national conditions, China Textile Industry Association, Du Yuzhou said: “2 / 3 of the business relationship between the people’s livelihood, can not be ‘weaned’.”

The abolition of the unreasonable policy

The Council, on behalf of a number of objective that the cotton spinning enterprises to the difficulties of factors, some of the market competition, industry in the process of transfer of the inevitable, and some is unfair, such as cotton spinning industry-specific some of the irrational Policy should be abolished.

Cotton spinning enterprises up to criticism that the import duty on cotton quasi-sliding, cotton value-added tax, the abolition of the “two plane” duty-free imports of value-added tax. Representatives pointed out that the slide was originally a quasi-taxes in order to protect the domestic cotton price, and the continuing rise in international cotton price, to replace imported cotton, the prospective after-tax charge slip have been much higher than the domestic cotton price, the loss of sliding the existence of quasi-taxes. Cotton output and input value-added tax rate difference of 4 percentage points, from the cotton spinning enterprises to undertake, on behalf of some of the view that in the past when the benefits do not feel good that is a big burden, but it may be crushed the camel’s last straw. With regard to the abolition of automatic winding and air-jet looms imported duty-free value-added tax policy, its development of the industry would do more harm than cotton spinning industry has to reflect this again. The deputies believe that this policy dealt a heavy blow to the textile industry, textile industry is bound to slow down the pace of technological progress, so that the textile industry in even worse predicament.

During the meeting, carried out by the whole process, and always will be able to feel the enormous pressure on the shoulders of business. While these proposals are old topic, but this year, more companies feel able to rise to hope that the government’s urgent attention.

1 / 3 of the industry to enhance business confidence

Although the situation is so serious, but not the darkness, as Du Yuzhou said: “Although the 2 / 3 of the enterprise profit margin is only 0.62 percent, but in such difficult circumstances, can achieve such results have been very easy on industry Progress in itself. “In addition,” the industry 1 / 3 of the business has made good achievements in their industrial upgrading, increased our confidence. ”

At the meeting, a number of enterprises to introduce their own experience, the specific approach may be different, but the “technology” and “brand” and “innovation” is still his soul.

Yes, in appreciation of the yuan, rise in labor costs, and other macroeconomic factors, some are inevitable, is a symbol of social progress, the industry can not be changed, only the enterprises to adapt it to speed up the pace of upgrade and improve the internal management. It is hoped that after a baptism of China’s cotton spinning industry can stand on new starting point.