Affected by the export tax rebate adjustment rumors, the 109th session of the Canton Fair was uncertain.
"If the 5% down, we really have no profits." May 3, Zhejiang Native Produce Import & Export Group Chairman Gao Bing science to the newspaper, the market rumors, the state will be "high pollution, high energy consumption since April, "Resource-based" "two high and one capital" industry lowered the export tax rebate, in which textile and apparel export tax rebate rate will be reduced from 16% to 11%.
Gao Bingxue believes that the export of textile and clothing is a low profit, and the amount of export tax rebates is related to the industry's living conditions. If the tax rebate rate drops sharply by 5 percentage points, most SMEs will face bankruptcy under the pressure of rising raw materials and exchange rates.
The reduction of export tax rebates will worry about the loss of garment orders, and the price increase will be more limited.
On the morning of May 3rd, Guangzhou Metro Line 8, Xingang East Station, people with different skin colors poured out of the ground and rushed to the Canton Fair Pazhou Complex.
Looking at the endless buyers, Gao Bingxue's mood has not become easy. The current exchange rate against the U.S. dollar has fallen below 6.5 from 6.58 in the previous month, resulting in an overall decrease in corporate profits by 0.8 points.
Data show that during the whole year of 2010, the appreciation of the *** against the US dollar was 3.1%; entering 2011, the *** exchange rate against the US dollar began an “accelerated runâ€, and the cumulative increase in the first four months has reached 1.9%, accelerating appreciation. The situation is clear.
Gao Bingxue told the reporter that for every 1% increase in the value of ***, companies will face exchange losses of $16,000, or more than 100,000 yuan, and profits will decrease by about 5%. Therefore, the quotation cycle of the product is fixed from the previous year to a half month, and it must be re-quoted every 10 days. It is completely floating.
"From the point of view Huilv, take a long single is likely to lose money." Ningbo Import & Export Company should Xiuzhen, deputy general manager, said that although accounting for a quote *** Huishuai weight does not exceed 30%, but have a greater appreciation of uncertainty Many companies only dare to pick up some short orders.
At present, under the combined effect of rising prices of bulk commodities, raw materials, and appreciation of foreign currencies, small and medium-sized foreign trade enterprises have already been approached to “life and death barriersâ€.
On April 26, Liu Jingyun, deputy director of the Finance Department of the Ministry of Commerce, said that the average profit rate of China's export enterprises in 2010 was 1.47%, which was lower than the average profit level of industrial enterprises; from January to February 2011, the export profit rate of enterprises further fell to 1.44. %.
In the first quarter economic data released, despite the first deficit in six years, China’s textile and apparel exports totaled US$ 48.627 billion, a year-on-year increase of 23.96%.
“If we exclude the factors of general price increase by enterprises, it is very likely that negative growth will be caused solely by quantity.†Jin Fangping, general manager of China Commodity City (600415) believes that the global demand for centralized repositories will come to an end this year, and the cost will force export of textile enterprises. Product prices will be forced to increase by 10% to 15%, and the price game process will be extremely difficult.
More worryingly, it comes from the rumor that the export tax rebate has been lowered. In 2010, China's total textile exports reached 77.051 billion U.S. dollars, and the export tax rebate amounted to approximately 78.5 billion U.S. dollars. It fluctuates by one percentage point, which is related to the textile industry's profit of about 5.2 billion U.S. dollars.
Ouyang Meiqin, a foreign trade manager of Zhejiang Xinshi Garment Co., Ltd. pointed out that once the export tax rebate rate is reduced by 5 percentage points, the loss of orders for Chinese garments (000902) will inevitably increase, and the price increase space will be more limited.
Gao Bingxue asserted that if rumors become a reality, domestic textile and garment export enterprises will close a large number of them.
The situation of foreign trade in the six major export provinces is not optimistic. About half of the companies in these regions have experienced a drop in profits and increased losses.
Export tax rebates play an important role in China's import and export trade.
Textile and garment industry as an example, Dr. Department of Commerce Economic Research Institute of International Trade Cooperation Mei Xinyu to the newspaper, between August 2008 to April 2009, subject to international market demand plummeted, businesses due to "new labor law" With the introduction of prices and rising raw material costs, the country has raised the export tax rebate rate four times, gradually increasing the rate from 11% to 16%. In January 2011, due to the rise in international oil prices, the export tax rebate rate for the chemical fiber industry in the upper reaches of the textile industry was again raised by 2 percentage points.
And to a certain extent, export tax rebates have become the "protective umbrella" for domestic enterprises. Under its shelter, domestic companies have never stopped the practice of using low prices as an advantage. Even foreign purchasers now understand that as long as the export tax rebate rate is raised, the price can be lowered.
Moreover, the current situation of low-cost growth and the energy consumption ratio caused by this industry are expanding.
Relevant information shows that the energy consumption of the entire process of China's textile industry is roughly 4.84 tons of standard coal / ton of fiber. Among them, the energy consumption of the apparel industry is 1.05 tons of standard coal/ton of clothing, the energy consumption of the weaving industry is 0.95 tons of standard coal/ton of fiber, the energy consumption of the printing and dyeing industry is approximately 2.5 tons to 3.2 tons of standard coal/ton of fiber, with an average of 2.84 tons of standard Coal/ton fiber. This shows that the textile industry is the focus of energy-saving reforms.
In 2010, China's export tax rebate amounted to 730 billion yuan, while the trade surplus was 183.1 billion US dollars, which meant that the gap between the export tax rebate and the trade surplus was narrowing. Therefore, some scholars have proposed to gradually cancel or lower export tax rebates.
But the market is different about this. Recently, foreign trade surveys from the six major export provinces of Guangdong, Zhejiang, Jiangsu, Liaoning, Sichuan, and Hubei have shown that about half of these companies’ profits have declined and their losses have increased. People in the industry pointed out that reducing the rate of export tax rebate rate should not be too large, and control should be 1 to 2 percentage points during the year to try to maintain a relatively stable export business environment.
Pan Yinglai, head of Zhejiang Jinfang Trading Co., Ltd., believes that from the perspective of the industrial transformation strategy, China's downward adjustment of tax rebates for textile products should be carried out. What needs to be considered now is only the extent of tax adjustment and the time for the introduction of policies.
Pan Yinglai called for other ways to reduce the burden on companies, such as downgrading industrial enterprises by up to 17% of value-added tax and 30% of income tax.
"As the entity of the real economy, factories and shopping malls need to continuously invest funds into production. It is unreasonable for the two companies to bear the same amount of tax burden," Pan Yinglai said bluntly.
In response to concerns of enterprises, Gao Hucheng, deputy minister and deputy minister of international trade negotiations of the Ministry of Commerce, publicly responded in a recent response, saying that “the country’s foreign trade policy will remain relatively stableâ€.
"If the 5% down, we really have no profits." May 3, Zhejiang Native Produce Import & Export Group Chairman Gao Bing science to the newspaper, the market rumors, the state will be "high pollution, high energy consumption since April, "Resource-based" "two high and one capital" industry lowered the export tax rebate, in which textile and apparel export tax rebate rate will be reduced from 16% to 11%.
Gao Bingxue believes that the export of textile and clothing is a low profit, and the amount of export tax rebates is related to the industry's living conditions. If the tax rebate rate drops sharply by 5 percentage points, most SMEs will face bankruptcy under the pressure of rising raw materials and exchange rates.
The reduction of export tax rebates will worry about the loss of garment orders, and the price increase will be more limited.
On the morning of May 3rd, Guangzhou Metro Line 8, Xingang East Station, people with different skin colors poured out of the ground and rushed to the Canton Fair Pazhou Complex.
Looking at the endless buyers, Gao Bingxue's mood has not become easy. The current exchange rate against the U.S. dollar has fallen below 6.5 from 6.58 in the previous month, resulting in an overall decrease in corporate profits by 0.8 points.
Data show that during the whole year of 2010, the appreciation of the *** against the US dollar was 3.1%; entering 2011, the *** exchange rate against the US dollar began an “accelerated runâ€, and the cumulative increase in the first four months has reached 1.9%, accelerating appreciation. The situation is clear.
Gao Bingxue told the reporter that for every 1% increase in the value of ***, companies will face exchange losses of $16,000, or more than 100,000 yuan, and profits will decrease by about 5%. Therefore, the quotation cycle of the product is fixed from the previous year to a half month, and it must be re-quoted every 10 days. It is completely floating.
"From the point of view Huilv, take a long single is likely to lose money." Ningbo Import & Export Company should Xiuzhen, deputy general manager, said that although accounting for a quote *** Huishuai weight does not exceed 30%, but have a greater appreciation of uncertainty Many companies only dare to pick up some short orders.
At present, under the combined effect of rising prices of bulk commodities, raw materials, and appreciation of foreign currencies, small and medium-sized foreign trade enterprises have already been approached to “life and death barriersâ€.
On April 26, Liu Jingyun, deputy director of the Finance Department of the Ministry of Commerce, said that the average profit rate of China's export enterprises in 2010 was 1.47%, which was lower than the average profit level of industrial enterprises; from January to February 2011, the export profit rate of enterprises further fell to 1.44. %.
In the first quarter economic data released, despite the first deficit in six years, China’s textile and apparel exports totaled US$ 48.627 billion, a year-on-year increase of 23.96%.
“If we exclude the factors of general price increase by enterprises, it is very likely that negative growth will be caused solely by quantity.†Jin Fangping, general manager of China Commodity City (600415) believes that the global demand for centralized repositories will come to an end this year, and the cost will force export of textile enterprises. Product prices will be forced to increase by 10% to 15%, and the price game process will be extremely difficult.
More worryingly, it comes from the rumor that the export tax rebate has been lowered. In 2010, China's total textile exports reached 77.051 billion U.S. dollars, and the export tax rebate amounted to approximately 78.5 billion U.S. dollars. It fluctuates by one percentage point, which is related to the textile industry's profit of about 5.2 billion U.S. dollars.
Ouyang Meiqin, a foreign trade manager of Zhejiang Xinshi Garment Co., Ltd. pointed out that once the export tax rebate rate is reduced by 5 percentage points, the loss of orders for Chinese garments (000902) will inevitably increase, and the price increase space will be more limited.
Gao Bingxue asserted that if rumors become a reality, domestic textile and garment export enterprises will close a large number of them.
The situation of foreign trade in the six major export provinces is not optimistic. About half of the companies in these regions have experienced a drop in profits and increased losses.
Export tax rebates play an important role in China's import and export trade.
Textile and garment industry as an example, Dr. Department of Commerce Economic Research Institute of International Trade Cooperation Mei Xinyu to the newspaper, between August 2008 to April 2009, subject to international market demand plummeted, businesses due to "new labor law" With the introduction of prices and rising raw material costs, the country has raised the export tax rebate rate four times, gradually increasing the rate from 11% to 16%. In January 2011, due to the rise in international oil prices, the export tax rebate rate for the chemical fiber industry in the upper reaches of the textile industry was again raised by 2 percentage points.
And to a certain extent, export tax rebates have become the "protective umbrella" for domestic enterprises. Under its shelter, domestic companies have never stopped the practice of using low prices as an advantage. Even foreign purchasers now understand that as long as the export tax rebate rate is raised, the price can be lowered.
Moreover, the current situation of low-cost growth and the energy consumption ratio caused by this industry are expanding.
Relevant information shows that the energy consumption of the entire process of China's textile industry is roughly 4.84 tons of standard coal / ton of fiber. Among them, the energy consumption of the apparel industry is 1.05 tons of standard coal/ton of clothing, the energy consumption of the weaving industry is 0.95 tons of standard coal/ton of fiber, the energy consumption of the printing and dyeing industry is approximately 2.5 tons to 3.2 tons of standard coal/ton of fiber, with an average of 2.84 tons of standard Coal/ton fiber. This shows that the textile industry is the focus of energy-saving reforms.
In 2010, China's export tax rebate amounted to 730 billion yuan, while the trade surplus was 183.1 billion US dollars, which meant that the gap between the export tax rebate and the trade surplus was narrowing. Therefore, some scholars have proposed to gradually cancel or lower export tax rebates.
But the market is different about this. Recently, foreign trade surveys from the six major export provinces of Guangdong, Zhejiang, Jiangsu, Liaoning, Sichuan, and Hubei have shown that about half of these companies’ profits have declined and their losses have increased. People in the industry pointed out that reducing the rate of export tax rebate rate should not be too large, and control should be 1 to 2 percentage points during the year to try to maintain a relatively stable export business environment.
Pan Yinglai, head of Zhejiang Jinfang Trading Co., Ltd., believes that from the perspective of the industrial transformation strategy, China's downward adjustment of tax rebates for textile products should be carried out. What needs to be considered now is only the extent of tax adjustment and the time for the introduction of policies.
Pan Yinglai called for other ways to reduce the burden on companies, such as downgrading industrial enterprises by up to 17% of value-added tax and 30% of income tax.
"As the entity of the real economy, factories and shopping malls need to continuously invest funds into production. It is unreasonable for the two companies to bear the same amount of tax burden," Pan Yinglai said bluntly.
In response to concerns of enterprises, Gao Hucheng, deputy minister and deputy minister of international trade negotiations of the Ministry of Commerce, publicly responded in a recent response, saying that “the country’s foreign trade policy will remain relatively stableâ€.
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