China’s textile export enterprises will face a real winter
Recently the General Administration of Customs statistics show that in November 2008, China’s total import and export 189.89 billion U.S. dollars, representing 9 percent year-on-year decline. 114.99 billion U.S. dollars, including exports, fell 2.2 percent; imports 74.9 billion U.S. dollars, up 17.9 percent decline. This is the import and export since 2000, the first time the indicators of negative growth. At the same time, exports from the previous month’s increase of 19.5 percent year-on-year declined by nearly 1 / 6, there has been the first time since 1998, negative growth. A sudden sharp drop in exports indicates that China’s textile export enterprises will face a real winter.
“The end of the year 2008 only Xiao-han, the real winter yet to come. The first quarter of 2009 for China’s textile enterprises will be more cold, this winter feeling even throughout the year.” Authoritative industry pointed out that the recent presented by the sharp decline in the export situation of China’s textile enterprises in 2009 sounded a warning of the cold.
Professional web site before the release of such a study, the export tax rebate rate to 15 percent, in 2009 the average exchange rate of RMB against the U.S. dollar in accordance with the 6.5 estimate, the changes do not take into account other factors, because of the export tax rebate adjustment will allow the textile industry increased by about 57 billion in net profit.
5.7 billion in net profit growth of good news, the domestic textile enterprises are “happy” do not stand up. Perhaps the export tax rebate rate will be further transferred to the 17 percent we expected, so that 2009 will bring to the 51.69 percent rate of profit growth, but this is also a major positive no match demand in overseas markets fell to the Chinese textile sluggish exports.
It is no wonder that the export textile enterprises are also excited about how not. “Without the orders, all out of the question.” Vice president of the China Garment Association, Guangdong Holdings Ltd., Chairman of Shui Ming Cheung believes that it is very difficult to deal with this situation. Others did not give you orders, you want to deal with are unable to gain the upper hand. The most important thing is to retain our strengths and strengthen the workforce training, waiting for an opportunity. Once the market recovery, the first time stormed the market. Tsai Ming-cheung, said: “Only by taking the current name Rui mosquitoes to fight anti-aircraft approach, starting from the low-cost products, and strive to meet the technological innovation on the market.”
As far as I know, in November 2008, of Swiss foreign trade orders declined by 50%, and to 12 months, were Baorui has grown to half of the time major U.S. companies received less than the status of orders. Rui past were known as the wall is a wall of fragrant flowering famous export enterprises. Its production of the wedding dress has been on the U.S. Fifth Avenue high-end consumer goods that can name a single foreign Baorui almost all of the world famous international names, because of Swiss foreign trade has never issued orders.
Experts point out that increase in tax rebate policy difficult to save the situation, perhaps the original will need to enter “hibernation” state enterprises began to study the “winter.” But the state in support of industrial upgrading measures are the industry ultimately the key to new life.
All signs show that in 2009 the export situation is not optimistic. First of all, the euro-zone economy since its inception in 1999 has begun to fall into recession, a total of RMB appreciation against the euro as high as 19.2 percent, the EU became a step-by-step the United States follow the main areas. Second, with the domestic retail sales of consumer goods showed a decline in growth, sources predicted that in 2009 retail sales of consumer goods growth rate of the whole society will be brought down to 12.2 percent, while the wholesale and retail industries such as clothing, hats, footwear, textiles needle growth may be brought down to below 20%.
Some experts think that the government policy of expanding domestic demand will, sooner or later to play the effect of a positive impact. However, due to the current domestic situation as well as the specific objective has always been re-saving light consumer awareness and habit, the state introduced the policy of stimulating domestic demand-related short-term effect on the textiles and clothing need to observe, as a flexible clothing optional larger consumer goods, people In the pessimistic expectations when there is no fundamental reverse is likely to more cautious consumer.
China National Textile Industry Council spokesman Sun Huaibin said that the international situation in 2009 will be even more grim, as the financial crisis spread and escalation of trade protectionism, export situation will not optimistic. However, this year’s national policy is better than the atmosphere in 2008, multiple positive policies and the introduction of the principle of stimulating domestic demand, driven to the textile industry provides a relaxed external environment. The textile industry should seize the opportunity, in science, technology, brand names to work on, in the domestic market to expand on the article done.