CHINA: China Supports Fragile Textile Industry

The Chinese Ministry of Industry and Information Technology just issued a document to solicit public opinions to help stranded textile industry. The document includes proposals from the National Development and Reform Commission, the Ministry of Commerce, the Ministry of Finance, China National Textile and Apparel Association, China Cotton Association and People's Bank of China.

It's proposed to raise export tax rebate rate of textile and garment industry from 11 percent to 13 percent and from 11 percent to 15 percent, respectively, with cotton import sliding duties lowered to three percent from five percent. The import tariff of partial textile machines and auto-winding machine is to be exempted to prompt industry upgrading, and more financial credit is provided to finance current capital demand of textile enterprises.

Besides, the document also suggested the proper reduction of the RMB appreciation. According to industrial insiders, theses proposals may help many textile enterprises especially small and medium-sized enterprises to tide over the difficulty period.

Source: Xinhua News Agency