In 2008 the significant downturn in textile exports

“This is a worst of times, this is a best of times, this is a winter of despair, this is a spring of hope, nothing before us, what we have before us.” Dickens of this remark was cited numerous times. Who have just experienced the “golden years” of the textile industry, the more can be mixed feelings.

Spinning an unprecedented rate into the plight of

In 2008, excluding the month of the Spring Festival, such as abnormal individual, textiles and garment export growth rate of monthly decline trend is very obvious. Customs statistics show that 1 in November China’s textile and garment export growth of 8% over the same period dropped 11.66 percentage points. If we consider the exchange rate change to the yuan-denominated textile and apparel exports in November fell 1.49 percent, which is RMB-denominated export growth of textile second consecutive 6 months of negative growth.

In 2008 textile exports, there is a prominent phenomenon, namely, textiles and clothing exports showing a distinct trend of differentiation. In November last year, the renminbi rate of textile exports for 12 percent, and garment export growth rate higher than the 16.2 percentage points. Clothing exports as a result of a larger share of the weight, so in 2008 textile export growth eased substantially process, apparel is “a great tribute.”

Sluggish demand abroad, many export enterprises will look to re-spun into the domestic market. However, the domestic terminal of the consumer market supply and demand in the booming Village in October 2008 through a “continuous rain,” the market, and even the industry category also appeared in the overall signs of landslide, such as the domestic apparel industry, from production and import and export the volume of sales and marketing to the market price, regardless of growth or value, and both are on the decline; Although the textile market (especially Hometextile supplies) are still a good performance, but eventually, the current atmosphere clouded the whole industry in particular re – not light.

Including Hualian Sanxin, jianglong holding, Jinxiong Textile Group, pentacyclic spandex, and vertical and horizontal group of leading enterprises such as textile production and have been caught in the brink of collapse triggered the market very uneasy. While this unease at subsequent local government to save money and be temporarily resolved, but can not ignore the fact that unemployment has been spun into an unprecedented dilemma. From 2007 to the first half of 2008, the textile industry for loss of profits mainly from changes in currency exchange rates, driving up costs, etc., and the September after the orders to reduce the over-supply has been replaced by rising costs as the industry faces the most important pressure.

Policy support for the enterprise burden to help the beleaguered textile industry, the Government spent almost including raising the export tax rebate rate, adjusting the processing trade policy, tax cuts, cut all policy tool.

Renminbi loans to lower interest rates for example, the textile industry in 2009 will be 8.127 billion yuan to reduce interest payments, accounting for the entire industry in 2008 total profits (1150 billion) of 7.07%. From the sub-industry, chemical fiber, cotton and other high debt ratio, the larger capital expenditure, cash flow of the company to benefit from the greatest tension.

The impact of the global financial crisis in the escalation of critical moment, the beginning of 2009 to suspend the processing trade margin”real change”, “idle” the return of a lot of money for the chain of processing trade enterprises strained brings hope. Preliminary estimates, the New Deal for the textile and apparel enterprises increase trade restrictions margin will reach 7.4 billion yuan.