Economic Analysis and Forecast of China's Textile Industry in 2012 (Part 2)

Stabilize the domestic cotton market to implement the micro-support policy

This year, textile companies are undoubtedly required to make greater efforts to cope with the rising costs of a series of factors such as rising labor costs, fluctuations in raw material prices, and increases in energy and power prices. But for cotton, finance, taxes, exchange rates and other external environmental issues, Enterprises cannot be digested by their own efforts and are eagerly looking forward to the country's introduction of relevant policies for attention and support.

First, stabilize the domestic cotton market. At present, domestic and foreign cotton spreads are large and international cotton resources are adequate. Seize the opportunity to expand cotton imports and reduce cotton costs for textile companies. It is recommended that the state implement a fiscal subsidy method for reserve cotton reserve this year and implement it at a reasonable price.

Second, reduce the cost of banking. Focusing closely on solving the difficulties of financing and financing for SMEs in the textile industry, it is recommended that the regulatory authorities regulate the bank's floating interest rate, cancel the acceptance acceptance system, rectify the bank’s operational order, and put the central government’s support for SME financing policies in place.

Third, reduce corporate tax burden. To solve the long-disturbed problems of cotton textiles and other industries, "high-learning low deduction" (17% VAT levy 13% deduction), to reduce cotton textile company tax. The business tax will be changed to the pilot value-added tax to expand the field of production and industry in the textile industry. Considering the employment contribution of labor-intensive industries, corporate income tax is allowed to deduct a certain percentage of wages.

Fourth, implement the support policy for SMEs. We will implement the State Council's support policies for fiscal, taxation, finance, and technological reform support for small, medium, and micro enterprises, and accelerate the development of industrial innovation platforms, public service systems, and industrial alliances that benefit the majority of SMEs.

Fifth, support enterprises to "go out." We will increase policy support for foreign companies to establish raw material bases, R&D centers, and purchase brand channels abroad.

Strengthen Deepening Management and Accelerate Brand Construction

Based on the risks faced by the industry, textile companies also need to make greater efforts in strengthening internal management, accelerating technological innovation, and developing new products. Strengthen the deepening of enterprise management and increase labor productivity. Faced with "difficulties in recruiting workers" and the substantial increase in labor costs, the use of basic management and information technology will be strengthened to increase labor productivity and reduce production costs.

Accelerate technological transformation and upgrade advanced equipment. Accelerate technological transformation and innovation and improvement, including eliminating backward technology and equipment, introducing advanced equipment, and accelerating the digestion and absorption of new technologies and re-innovation.

Strengthen new product development and increase product added value. Strengthen the research, development, and industrialization of key technologies such as high-simulation, functionality, differentiation, high-tech fiber materials and industrial textiles, develop personalized low-carbon products, and increase the added value of products.

Strengthen the construction of independent brands and optimize the construction of marketing channels. To promote the development of the advantages of leading brand companies in the development of the industrial chain at both ends of the industry, and the supporting model for small and medium enterprises. Acquisition and integration of foreign brand companies, as soon as possible to the brand, marketing and other high value-added links.

Use financial instruments to defend against market risk. By using **market products, appropriate financial instruments are used to avoid exchange rate risks.

Increase market development and reduce trade frictions. We will continue to run well domestic industrial exhibitions, actively participate in international exhibitions, and strengthen the tracking, monitoring, and early warning of key export markets.