Chinese government has urged textile producers to increase exports, invest overseas and adopt technological development to realize 10% annual growth rate by 2011.
The Chinese government, in its stimulus plan, urged textile producers to increase export, innovate and merge to further strengthen their competitiveness, as reported by Shanghaidaily.
Chinese textile producers are expected to record an additional value of 1.2 Trillion Yuan (US$ 175 Billion) by 2011 along with year-on-year growth of 10%. State Council has also said that textile exports would register YOY growth of 8% to reach US$ 240 Billion by 2011. Moreover, the Chinese cabinet hiked the export tax rebate for garments and textiles from 15% to 16% in April 2009, the fourth hike in about a year.
The central government has expressed commitment that it would further raise the export tax rebate and would explore new markets to give fillip to the textiles exports. With the intention of ensuring sustainable development and structure upgradation, China's State Council has introduced an extensive three years support plan for the country's textile industry.
The textile manufacturers have been asked to acquire share in foreign companies and invest overseas to uplift the country's international position.
The industry still has immense growth potential, but it should also maintain its share in the international market. The industry should also stimulate demand through industrial restructure, innovation and technology upgrade.
Several necessary steps are required to be taken in order to remove flaws from the industry like elimination of obsolete capacity, reduction in energy consumption and improving the industry's efficiency.
However, China's textile machinery industry posted constant decline in production and sales along with severe slump in exports and imports during January-February 2009, as per the data given by China Textile Machinery Association (CTMA).
Besides the textile industry, in the beginning of 2009, the Chinese government also unveiled stimulus plans for sectors such as information technology, vehicles, electronics, steel, machinery and shipbuilding.
According to a Research Analyst at RNCOS, "China has hiked the value added tax rebates on products ranging from steel to textiles several times since the middle of 2008. The objective of raising tax rebate is to protect the industries from decline in external demand due to the economic meltdown. While there is some improvement in monthly figures, it would be too early to declare the present rise is a trend."
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Women Wear Market Forecast to 2010
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