China sets 10% annual growth rate for textile industry

27 April 2009, Shanghai - China has urged its textile producers to merge, innovate and export more, as part of a strategy to strengthen competitiveness, the central government said on Friday in a stimulus plan for the industry.

 Shanghai Daily reports that according to the State Council statement, major textile producers should realize added value of 1.2 trillion yuan (US$175 billion) by 2011 with an annual growth of 10 per cent and their exports are to rise 8 percent year on year to US$240 billion by 2011,

"The country's textile industry still has large market space and we must stabilize the international market share and stimulate domestic demands through innovation, technology upgrades and industrial restructure," the statement said.

The central government pledged to further increase export tax rebates and actively explore emerging markets to develop new momentum for sustainable export growth. It also encouraged textile manufacturers to invest overseas and acquire shares in foreign companies to lift China's global position.

China's Cabinet increased the export tax rebate for textiles and garments to 16 per cent from 15 percent this month, the fourth increase in almost a year.

According to Shanghai Daily, the Cabinet will also offer financial support to the industry which will include helping textile makers diversify their financing tools and encouraging financial institutions to strengthen credit loans to textile producers, especially small and medium ones. A special fund to support the development of small and medium enterprises would provide special access to textile companies to help them consolidate and explore the overseas markets.

In its encouragement of mergers and acquisitions, the Cabinet will also help develop some 100 self-branded enterprises and increase the proportion of exports of self-branded products to 20 percent.

Source: Shanghai Daily (www.shanghaidaily.com)