Textile Enterprises Look Forward To Policy Boosting

Thanks to the country's effective prevention and control of the epidemic and the support for the resumption of enterprises, the supply capacity and the operation of the industrial chain have basically returned to normal. However, the impact of the epidemic spreading on both ends of the supply and demand has caused the industry enterprises to face the challenge of insufficient orders, and the cancellation of the export orders, the delay and the price reduction occurred frequently. Falling revenues, shrinking revenues and tight cash flow have led businesses, especially small and micro enterprises, to face many crises.

"Under the epidemic situation, there is great policy space to enhance the international contribution made in China, and we hope that the government will increase its trade guidance and support to the industry." Sun Ruizhe, President of China Textile Industry Federation, said.

According to customs data, China's textile and garment exports amounted to US $66 billion 620 million in 1~4 months, down 10% from the same period last year, a drop of 8 percentage points from the first quarter. Among them, textile exports amounted to US $37 billion 310 million, an increase of 2.9% over the same period last year, and clothing exports amounted to US $29 billion 310 million, down 22.3% from the same period last year.

Since April, the completion of stock orders and the surge in demand for masks and protective clothing by various countries have pushed China's textile and garment exports narrowing rapidly, but the operation of the industry still faces greater pressure.

According to a survey conducted by the China Federation of textile industry, 65% of the dyed weaving enterprises surveyed indicated that export orders were less than 50% of the normal level; about 1/3 of printing and dyeing enterprises surveyed showed that export orders were less than 50% of the same period last year. In the survey of 49 key enterprises in the printing and dyeing Association, 95.9% of enterprises suffered the cancellation of orders in mid April, and the actual delivery price of 75.5% enterprises was lower than the contract price.

Sun Ruizhe said that with the gradual recovery of the support role of the domestic market and the global epidemic prevention and control situation, the operation level of the industry will be improved obviously. However, at present, facing the challenges of the epidemic, trade frictions and the noise risk of the global value chain, the Chinese textile industry must speed up upgrading to the high-end industry chain, and urgently needs policy support. The degree of increase will ensure the safety of industrial development.

In order to restore the industrial ecology affected by the epidemic, Sun Ruizhe suggested that we should increase the policy support to reduce taxes and reduce fees, and in the process of implementing policies, we should introduce small and medium enterprises with weak ability to resist the impact of the epidemic, foreign trade enterprises deeply integrating into the international supply chain, enterprises in key epidemic areas and poverty-stricken areas, and leading enterprises that have a leading effect on the supply chain but short term capital pressure. Special attention should be paid to promoting consumption recovery and potential release to help enterprises tide over difficulties.

In terms of safeguarding industrial safety, we should actively cope with the risk of shrinking trade, intensify efforts to stabilize the basic foreign trade market, cope with the risk of global supply chain breakage, safeguard the industrial system and scale advantages, deal with the industrial risks caused by trade protection, increase the protection of overseas interests of industries, and scientifically guide the layout of productive forces and avoid the hollowing of industries.

To help stabilize foreign trade, Sun Ruizhe believes that on the one hand, we need to strengthen the dynamic judgement and assessment of the trade environment, timely study and introduce more effective trade assistance policies, ease the difficulties of enterprises and stabilize their confidence in development. On the other hand, we should further optimize the structure of trade markets and promote bilateral bilateral trade negotiations, so as to create a better international economic and trade environment for enterprises. The policy recommendations include the following three aspects.

More vigorous financial and financial measures should be taken to ensure that textile and garment SMEs and export backbone enterprises (with an annual export volume exceeding US $30 million) will tide over the difficulties and ensure that these market players will not go bankrupt due to the cancellation of overseas orders in the first, second quarter, so as to avoid a large number of industrial workers from losing their jobs. Local governments at all levels are encouraged to give phased domestic production cost reduction, domestic tax refund, transformation and upgrading of special funds and discount loans to export enterprises. We should expand the coverage of export credit insurance, and include customers' deferred presentation of documents exceeding a certain time limit to cover the insurance coverage and reduce the premium rate. We should strengthen cooperation between governments at all levels and industry organizations, do well in public services, help enterprises to butt up industrial resources and market resources, and do well in export to domestic sales. We should develop new trade formats such as cross-border electricity providers, expand international marketing networks, increase support for international exhibitions, and guide enterprises to develop diversified markets.

At the same time, we should strengthen the analysis and judgment and policy support, while giving full play to the advantages of the industrial chain, and comb out the key areas and weak links, and further promote the strong links of the chain. The government departments should promote the establishment of a multilateral cooperation mechanism for Supply Chain Capacity Coordination under the epidemic situation, advocate a fair and inclusive Global trade mechanism, speed up standards docking and mutual recognition, and urge the lifting of unnecessary customs restrictions, halting, shutting down, and rejecting control measures to ensure the smooth and safe cross border supply chain. We should make overall plans for cotton related policies, guide industrial production capacity and capital to go out in an orderly way, and encourage enterprises to develop textile industrial chain cooperation in Lanmei and Africa. We should guide enterprises to optimize and make use of overseas investment and construction capacity and coordinate with domestic industry chain to enhance development efficiency. We should expand the pilot mode of the national market purchasing trade, and support the specialized market of textile and clothing to build overseas warehouses and overseas sub markets. We should further optimize the business environment and protect the interests of foreign invested enterprises in China.

The industrial risks caused by trade protectionism must also be handled cautiously. We should scientifically guide the layout of productive forces and avoid hollowing industries. We should also pay close attention to the risk of decoupling of industrial technology under the background of trade friction. We should increase support for high-performance fiber materials, finished products and equipment for downstream high-end industries and so on, so as to support the development of industry in an independent and controllable way.