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)
