The textile industry under the “five challenges” test

Before the financial crisis broke out, the textile industry has been under pressure from the “five challenges” test. After the financial crisis, the situation of the textile industry, more difficult, in an unprecedented dilemma —

19, a State Council executive meeting confirms the textile industry to promote the healthy development of the six measures, designed to cope with the situation process of the international financial crisis and changing international economic situation on economic growth and employment impact.

In China, the textile industry is a highly export-oriented industries, each of the 1 / 3 strong import cotton from abroad, 1 / 3 more than the product to rely on foreign markets. As a result, exports of cotton and textile industry has become the barometer of the two. Sufficient quantity of cotton, stable prices, production and operation of the industry like to grasp; export smooth, profitable, the industry will be able to maintain a basic “to balance production and sales.”

International financial crisis worsened the situation of the textile industry

In the financial crisis broke out before facing the textile export tax rebate and the appreciation of the yuan low, rising production costs and product prices drop in finished goods inventory and increased cash flow dried up, and the cotton shortage of labor resources, environmental protection and social responsibility, and so increase the pressure Five major problems. September, the National Textile export growth rate dropped nearly 10-year low. After the outbreak of financial crisis, the situation of the textile industry, more difficult, there have been three trends: First, the sharp decline in foreign orders; Second, the apparent low level of product requirements; Third, technical barriers to keep tightening. And to the industry and its social impact should not be underestimated.

Sharp decline in orders – along the coast caused a large number of export-oriented enterprises to close off a large number of mainland enterprises gauze product backlog. At present, many enterprises in the province of serious backlog of products, a sharp rise in stocks has been forced to take the downsizing measures to limit production, combined with coastal shutdown caused by a large number of unemployed migrant workers return home, an increase of the employment pressure and social instability;

Low quality products – a crisis brought about by the outside not only significantly reduce the single, and product quality and lower prices. Many enterprises in order to maintain production and markets, are “anti-aircraft guns to fight mosquitoes,” the production of low value-added products, low-grade, low-grade to adapt to the demands of the market. For example, the province’s cotton textile enterprises 3542 factories to China on the occasion, 80 more than the original high-grade products account for 2 / 3, which are adjusted only for 1 / 3; Another example is the province of knitwear enterprises in Wuhan love Dili, the current Although the volume of orders has not decreased, but the EU order, has significantly reduced the grade. In this way, over the past few years to make efforts to carry out technological transformation, product development, restructuring and industrial upgrading of the results achieved, the market has been left out in the cold, rendered “useless.”

Technical Barriers to tightening – because of weak market, the enterprise orders is not only difficult, but it is difficult to do alone. Europe is now China’s textile products is one of “first instance of a single” system. If after another 1-2 10,000 small list of clothing, customers have to send to Europe plant in the verification process, an evaluation of each enterprise to pay the assessment fee 750-1000 euros, an increase of the cost, even if there is one to do, businesses Unprofitable.

Cotton prices rise and fall impermanence, or the industrial chain will turn into a vicious circle

If the original “five major difficulties,” so that the struggling industry, the financial crisis in the industry so that the problems worse, then the rise and fall of cotton prices and volatile, given the industry a fatal blow. More than a month in recent years, the collapse in cotton prices has been basically down more than 2000 yuan per ton. At present, the average price of cotton in about 11,000 yuan per ton. As a result, it led to two questions: First, most of the province of large enterprises better in the new flower market to buy a large amount of cotton, direct loss of about million in 2000-3000. Second, the price of cotton has brought about a price greater than the rate of cotton (32 yarn prices in the 3,000 or so), and enterprises are now used in high-priced spent doing low-cost products, the cost can not digest, the consequences are more productive , The greater the loss.

As the prices of agricultural products, cotton and a drop lower and lower, the textile industry chain that each segment in the wait-and-see, the trend line chain. The current situation is: do not sell seed cotton farmers, cotton seed cotton plant does not close, dealers do not sell cotton, cotton textile mills do not buy, do not buy cotton weaving factories, printing and dyeing mill will not buy fabric, garment factories do not buy fabric, people do not buy衣服. As a result, the entire textile industry chain is very scary, no matter which links, even if the price of products sold, it is difficult to price.

The three major measures to alleviate the pressure on the industry

Under the current circumstances, the textile industry to cope with the financial crisis and ease the current pressure, in addition to actively implement the introduction of the national macro-control measures, they also need to adopt special policies to ease pressure on the industry.

First, optimize the environment, taxes and fees. At present the textile industry’s most difficult times, the Government proposed to improve the environment for the textile industry of taxes and fees, or stage of preferential policies to help the industry weather the storm. Specifically, the country is to improve the cotton textile industry of tax policy, practice and into other industries, like 17%, 17% of sales. Over the years, the textile industry’s main cotton textile industry has been introduced into the 13% is 17% of the sales tax (to buy when the cotton is 13% of the input tax, sales when the product is 17% of output), long-term To pay more than 4 points of the tax, a very unreasonable, with the result that heavier tax burden the industry (large-scale textile industry’s tax burden in the 8% to 11%), plus the cost of cotton textile industry accounts for 70% of the total cost to 80% alone, the cotton spinning industry to increase 15% to 20% of the profits.

Second, to optimize the financing environment. At present, companies generally reflect the financial difficulties, basic liquidity dried up, is likely to fall into a vicious circle of the mire. The current average price of cotton at 11,000 yuan per ton from top to bottom, is a rare phenomenon in recent years, there is always the possibility of recovery. Therefore, if the government and the banking industry at this time to give financial support to textile enterprises, and put the country’s discount policy in place for businesses to buy cotton, made double. On the one hand, textile enterprises which will help to ease the difficulties, on the other hand, will reduce the pressure on the cotton business.

Third, a heavy cotton market stability. Cotton textile industry is the lifeblood of our prices are not afraid, afraid of price instability, especially in big ups and downs. It is therefore recommended that countries should be concerned about rectifying the cotton futures market together, to combat short transactions, to take active measures to stabilize cotton prices to ensure farmers, agricultural products processing enterprises and textile enterprises should benefit.