Following the August 1 this year on some goods such as textile and garment export tax rebate rate hike after 21 at night, the Ministry of Finance and Administration of Taxation announced that once again, on November 1 increase from 3486’s commodity export tax rebate rate, accounting for about tariff in The full 25.8 percent of the total number of commodities.

This is the Chinese government macro tune to “increase security” after the introduction of major policies. Changjiang Securities analyst Cheng Xueting of the textile industry and the Web, said the biggest benefit of this policy is the textile industry as 1% of the export tax rebate rate, a large number of enterprises will turn losses into profits.

Foreign Economic Development and Reform Commission Zhang Yansheng, director of the Institute on the Web and that the financial crisis in the United States in the global economy against the backdrop of the Government raised the export tax rebate rate is very timely. At the same time, this policy is too tight in the past for policy adjustments in a timely manner, foreign trade enterprises to ease the growing pressure on the profitability of small, but a single good policy does not guarantee business, “Turning the Tide”, the long-term view, still need help to upgrade its transition.

Saved the lives of a group of textile enterprises

According to Liang Buwei issued “on the part of the goods to raise the export tax rebate rate,” which the export tax rebate rate adjustment consists of two main aspects: First, an appropriate increase in textiles, clothing, toys and other labor-intensive goods, the export tax rebate rate. The second is to enhance anti-AIDS drugs, such as high-tech and high value-added goods, the export tax rebate rate.

And on August 1 this year, the adjustment range, to raise the export tax rebate ratio of goods not only to textiles, clothing, but also medicine, machinery and electronics, furniture, toys and other merchandise. Said Zhang Yansheng, as the traditional labor-intensive goods, the proportion of large, the adjustment of business coverage and more extensive and greater impact. “The textile industry is concerned, this policy will save a large number of enterprises.” He said.

Chinese textile industry over the scale of the number of enterprises for more than 4, 2007, the industry-wide sales (net profit / total sales) of only 0.68 percent, to 2008, this figure has dropped to 0.27 percent. “If you exclude one-third of the pre-sales industry to maintain profit margins in the business for more than 8 percent, the vast majority of companies have been at a loss or a loss of edge and therefore improve the tax rebate rate of 1% means that a large number of enterprises will be transferred to deficit Surplus. “Chengxue Ting said.

July 1, 2007, the Ministry of Finance, the National Tax Administration of the fifth adjustment of export tax refund rate policy, the lower the export tax rebate rate. In addition to the curb too strong exports, the surplus is too large to resolve the problem, and the other is the purpose of the policy, the Government hopes to reduce the tax rebates to promote foreign trade enterprises in transition, just out of the production of low value-added industrial products operations, development model and implement the scientific concept of development Wang stressed the overall goal. In that case, how elastic a year between the change?

Zhang Yansheng of the view that the forthcoming implementation of the 14% of the textile export tax rebate rate is an appropriate level of tax rebates that such a policy will ensure that the vast majority of businesses to survive, but still faced the pressure of industrial transformation.

He said that processing trade enterprises in transition, to enhance the export structure of the original policy is good, but in the real environment, it may take 5-10 years over the period in order to be effective. As a measure to reduce the trade surplus, the strength of this policy at that time appears to be too much too quickly, only to have most of the low labor cost advantage of the export business, severely disadvantaged. In particular, small and medium enterprises, they can not afford this kind of multi-pressure.

Zhang Yansheng said the current export business is not the lack of overseas orders, but the international market due to rising raw materials prices have to increase domestic labor costs, and other factors renminbi appreciation, the high cost of exports, the export tax rebate rate in the low, thin or export profits As a direct result of a loss. The tariff reduction, in the past can not take orders can be picked up, exports are expected to expand the scale of corporate earnings will increase. For example, the textile industry, in August this year, up 2% tax rebate rate, to the sharing of foreign customers, traders and producers 3 of the sessions, each a small proportion of this increase again a percentage point to a further increase in corporate income .

Enterprise is the core of the transformation and upgrading

According to the latest Customs statistics, in the first three quarters of this year, China’s trade surplus from the same period last year 185,900,000,000 U.S. dollars to reduce 181,000,000,000 U.S. dollars, down 2.7 percent. The year-on-year exports to the United States increased by only 11.2 percent higher than the same period last year dropped by 4.6 percentage points. In addition, from the current (104th) traded a trade fair stand, a total export turnover 16,450,000,000 U.S. dollars. Despite the global slowdown in economic growth, international economic uncertainty increased, the desire to reduce the procurement business, signs of a decrease in export volume, but overall stable.

In that case, the new policy, China’s exports can resume to normal growth in the channel up? In the face of possible future export potential obstacle to the healthy development also depends on what factors?

Zhang Yansheng of the view that although the financial crisis in the United States should not be taken lightly, but China’s economic fundamentals are still healthy, sound macro-economic operation. Export growth rate did not decline significantly, the first three quarters of GDP growth of 9.9% in the third quarter of single-quarter increase of 9% in potential GDP plus or minus, the normal range of fluctuation.

But he also said that a single policy does not guarantee good corporate completely defuse the crisis, Turning the Tide, raised the export tax rebate rate is a good direction, the policy should gradually slow down and limit the pressure to maintain export competitiveness, but as soon as possible to achieve enterprise To upgrade and improve the structure of export levels, is the most critical factor in the core.

“Your labor, your land, your electricity, it produce business on your point of East and West, the current foreign trade enterprises did not have confidence in the technology market did not have talent, it is indeed a threshold, the Government needs to re-tax rebates under the outside The effort, step by step to help businesses tide over their difficulties, such as providing better, more financing, information business environment. “He said.

The excellent performance of the stock market can hardly be

Affected by this policy, textile and garment section 22 to open sharply higher, with investment in the textile, Zhejiang Friend, Fengzhu Textile and textile stocks open higher rate of the larger, Zhejiang Friend 21 on the limit in order to close. As of midday close, the textile and garment sector with 2.27 percent or the top UN position to benefit from a tax rebate plate followed by electrical plates, or 1.88 percent. Stocks, the Shanghai stock market trading 10 stocks, 6 families of the textile and garment industry, the electronics category 2 listed companies.

Changjiang Securities analyst Cheng Xueting that the textile industry for export enterprises, no doubt under a timely, textile and garment industries most affected. The plate may have ushered in a better short-term investment opportunities, if done in a long-term investment, but also study the fundamentals of their company performance, prospects and current valuation levels and other factors.

She said that the textile and garment industry, the adjustment is only a percentage point, the export tax rebate rate of 14% and 17% of the industry’s all-time high there are still gaps. At home and abroad in the future if the environment is still not improve or continues to deteriorate, textile stocks down space still exists.

Chengxue Ting said the Government’s proposal to raise textile export tax rebate rate of the enterprise is not in order to keep the industry, but for the sake of job security. “If a large number of textile enterprises were able to divert to other industries, can be expected, the tax refund rate has not been possible to enhance the space.”