www.chinaview.cn 2009-04-03 10:15:57 

Special Report: Global Financial Crisis

 BEIJING, April 3 -- Textile exports are set to languish this year with no signs of a quick pick up, notwithstanding the increase in tax rebates.

    China on Wednesday raised the tax rebate rates on exports of certain textile and apparel products from 15 percent to 16 percent. It is the fourth time the government has raised the rebate rate since last August.

 Longyang Textile in Changshu, Jiangsu province, saw its orders from the European and US markets, which used to contribute about 40 percent of the company's business, decline this year, according to General Manager Pan Chunhua.

"China's textile and apparel trade this year will probably see one of the lowest growth rates in a decade. The gloomy prospect of the US economy sinking deeper into recession is the main cause for the import demand shrinkage," said Sheng Lu, independent analyst.

 Pan from Longyang Textile said her company had decided to turn to the home market

    "Now what we can do is to participate in more relevant exhibitions and visit more buyers," she said.

    Guo Min, product manager of the Shanghai-based Texhong (China) Investment Co Ltd said his company would pour more money into research and development to retain its market share.

    "Direct exports account for only 20 percent of our business, while indirect exports account for 70 percent. But we are also facing pressure from indirect exports," he said. 

 (Source: China Daily)