Analysis of the Current Situation of the Survival of China's Textile Industry

On September 29, it was learned from two sets of CCTV (an economic half-hour column) that the textile industry of the first pillar industry in Tongxiang City, Zhejiang Province, totaled more than 4,000 companies and paid taxes of nearly 600 million yuan a year...as an advanced industry in the domestic textile industry. Representatives of the group, Tongxiang textile industry's impressive performance has been the attention of industry peers.

As we all know, the textile industry, as an important civilian production industry in China, once created a large number of ** for the country and made outstanding contributions to the national and local economic construction. However, since the second half of last year, domestic textiles have experienced an unprecedented "cold stream", the textile economy has slowed down, and the benefits of textile companies have declined. However, even in the current downturn in the entire industry, the textile industry has made tremendous contributions to ease the pressure on local employment and ensure the stability and harmony of localities.

CCTV reported that the bustling scene of Tongxiang textile industry is only a very small phenomenon in the domestic textile industry. The vast majority of textile companies are already in a dangerous situation of “life and death”. It can also be said that the entire industry has already fallen into an extremely difficult situation. As a result of this situation, besides the overcapacity of China's textile industry, the slowdown in global economic growth, and the declining demand, there are many controllable levels at the national and government levels, such as taxation policies, laws and regulations, and local regulations. influences:

1. The suppression of the unequal taxation policy of “high-learning and low-deduction”.

According to the current value-added tax system (implemented in 1994), China's cotton spinning enterprises (generally taxpayers) have implemented an input tax rate of 13% for cotton procurement and a product sales tax rate of 17%. This means that even if cotton spinning enterprises do not achieve value-added, they will purchase. Into the sale of cotton at the original price, the same burden on the tax, the so-called "high-learning low deduction" policy. The main raw material of cotton textile enterprises is cotton, which accounts for about 70% of the total production cost. Calculated with a 100,000-ton enterprise, according to the annual cotton consumption of 10,000 tons, an average of 13,000 yuan per ton of cotton, the company will pay 5.2 million yuan more tax in comparison with other companies for the year due to the "high-learning-lower deduction." In the case of the extremely sluggish textile market in successive years, the tax policy of “high-learning and low-bucking” is undoubtedly a “sparkle” or “burning” to cotton textile companies, accelerating the company’s death.

2. The policy introduced "one size fits all" and did not consider industry differences.

Textile is a labor-intensive, high-cost, low-profit industry. Under the present circumstances, the industry’s greatest contribution to the country is to support more than 23 million textile workers (only textile companies above the scale), and these 23 million workers are also industrial workers who have been living at the bottom. It has been announced on the Internet that the annual income of a meter-reading worker in a power plant amounts to 100,000 yuan, and the annual income of a textile worker is only 1/10 of that, which is roughly equivalent to the income from unemployment in some parts of the country. However, textile companies have assumed a heavier burden than other companies and have calculated them according to a 100,000-sheet textile company:

(1) After the "Labor Contract Law" is implemented, the company's annual labor cost will increase by about 8 million yuan, based on a 15% increase in the cost of labor costs;

(2) As the electricity tariff rose several times, the power consumption of textile enterprises rose from 0.46 yuan per degree in 2003 to 0.573 yuan per degree now, a rise of 24.57%. Now there is news that before the end of this year, the electricity tariff will be raised by 4-5 points twice. Only this one company will spend more than 10 million yuan more than the previous year.

(3) All kinds of fees are too high and there are many names. Enterprises are overwhelmed. Various kinds of fees and charges formulated by the government, some on the head and others on the total amount, have never considered the differences between different industries and the profitability of different ministries of industry. There are a series of costs such as “prevention fees”, “disabled persons”, “water resources fees”, “sewage treatment fees”, and “greening fees”, which are often more than 100,000, hundreds of thousands, and even millions of dollars. overwhelmed.

(4) As the main force of the domestic textile industry--the textile enterprises of "the state changes the people", in addition to undertaking the above pressures, they also have to bear huge and heavy historical burdens and social responsibilities (not to be described here).

3. Inequality in tax rates.

Due to different regions, the ratio of taxes paid by textile companies also varies greatly. In some places, taxes are paid in strict accordance with national policies. In some places, taxation, taxation, or other taxes are applied, and the difference in tax rates is 5-10. Times. Take the Tongxiang textile industry mentioned above as an example: The textile industry in the city has an annual output value of more than 50 billion yuan. Calculated with the taxes paid, the tax rate is only 1.2%. In contrast, the cotton textile enterprises in Jingzhou City, Hubei Province, a textile mill with an annual output value of only 200 million yuan, have an annual tax of over 15 million yuan (this is still the case in recent years when the textile industry is sluggish, and enterprises pay a limited portion of production. Taxes) The tax rate is more than 7%. If the normal year is used, the tax rate of the textile company is higher and the tax paid in the year is more than 20 million yuan. In other words, if the output value of Tongxiang Textile is 50 billion yuan in Hubei, the tax paid on it should be 2.5 billion to 3.5 billion yuan, and the tax amount of nearly 600 million yuan, with a difference of more than 2 billion yuan......

In recent years, the textile industry has been affected by international and domestic factors, and its survival and development have been severely challenged. In particular, in 2008, the accelerated appreciation of ***, tightening monetary policy, rising production costs and labor costs, rising energy prices, implementation of new labor laws, domestic macroeconomic controls, rising financial costs due to rising interest rates, and even more subprime mortgage crisis in the United States This has caused a global financial crisis and weakened demand... As a result, many domestic textile companies have been locked into the difficulties of shutting down vehicles, stopping production, and closing down, and the basic lives of a large number of textile workers have lost their protection. The textile industry has reached the “toughest in 10 years” juncture.

----In April 2008, Shandong Sakura Group was acquired by Ruyi Group due to insolvency;

----In June 2008, Zhengzhou National Cotton Company had to sell land for survival because of the capital chain break;

----In September 2008, the three state-owned textile enterprises in Zhengzhou were transferred as a whole due to operational difficulties;

Since 2008, the phenomenon of "supply exceeds demand" has appeared for the first time in domestic cotton. At present, the total amount of spindles in China has exceeded 100 million, and the average annual cotton consumption has reached more than 10 million tons, while China's self-produced cotton is only about 6 million tons, and its cotton gap should be 4 million tons. However, this year, China not only reduced imports of cotton, but also the country’s large purchase of reserve cotton, while textile companies’ demand for cotton declined. The reasons are: the decline in the efficiency of textile companies, the increase in losses, the decrease in operating rate, and the increase in the rate of stoppages.

An important means for international countries to handle the economic downturn is to reduce tax rates and stimulate economic development. At present, with the global economy generally declining, China's textile industry must not only respond to more stringent anti-dumping, countervailing, and other trade barriers from abroad, but also suffer from various pressures and difficulties from the country, especially taxation. "Underlying the low deduction" of the inequality policy. The further deepening and intensification of negative factors in all aspects has seriously threatened the survival of the textile industry and the basic life of 23 million textile workers. Textile companies urgently need the government's "fair" treatment and strong support in policy! The distressed textile companies urgently need a "buoy!"

Seagrass Bird Cage

Bird Gift Basket,Hanging Seagrass Birds Cage,Parrot Cage,Seagrass Bird Cage

Guangxi Pubei Jinliang Arts and Crafts Co.,ltd , https://www.arts-manufacturers.com

Posted on