Foreword: September 24th is my country’s traditional festival – the Mid-Autumn Festival. When everyone visits relatives and friends to reunite and enjoy the moon, the United States also sends gifts to China Here comes a “gift”: an additional 10% tariff on US$200 billion of Chinese goods exported to the United States. Then China launched an immediate counterattack: an additional tariff of 5% to 10% on US$60 billion of goods imported from the United States. Sino-US trade The confrontation escalated again.
The Sino-US trade war is raging, but today the author I heard that some textile and foreign trade bosses were particularly calm about this. What news helped them regain their composure?
Reducing import tariff rates to promote textile import trade
According to the Chinese government website, the State Council decided to reduce import tariff rates for 1,585 tax items, including the average tax rate for textiles dropped from 11.5% to 8.4%. According to statistics from the China Chamber of Commerce for Import and Export of Textiles, my country’s total textile trade imports in 2017 were US$24.55 billion, an increase of 5.3% over the previous year.
Among imported textile products, yarn It accounts for the largest proportion at 31.96%, and countries such as Pakistan, India, and Vietnam are the main sources of imported yarns in China. The reduction of import tax rates will promote further cooperation between China and these countries and meet the needs of enterprises to increase production and reduce costs. , is undoubtedly a great benefit to textile enterprises and gives textile foreign trade enterprises a shot in the arm.
The decline in the RMB exchange rate promotes the improvement of textile exports
Since April this year, the depreciation trend of the RMB has been strong. On September 25, the onshore RMB exchange rate against the US dollar fell by 380 basis points in a single day, the largest drop in the past two months. Today (September 27), the US dollar against the RMB was quoted at 6.8642, an increase of 71 points. The RMB is still depreciating.
“We are in the textile export business, and the depreciation of the RMB this year is a big benefit to us. On the one hand, the depreciation of the RMB is, to a certain extent, a Opportunities, the profit of each order we make may increase. On the other hand, when the RMB appreciates, we will consider the actual profit of later orders and dare not accept orders, while the depreciation of the RMB will reduce the pressure on us to accept orders. , the orders received will also increase.” said a boss Wu who is engaged in foreign trade.
China is a major textile and clothing exporting country, in 2018 In the first half of the year, China’s cumulative exports of textiles and clothing were US$127.5 billion, a year-on-year increase of 3.2%, accounting for nearly 11% of China’s exports of all commodities. The export situation is good this year, and the depreciation of the RMB has enhanced export competitiveness, which has also alleviated to a certain extent It has alleviated the negative impact of the trade war on China’s exports and promoted the development of the textile export industry.
The state has increased its support for small and micro enterprises
On September 6, the Ministry of Finance announced the “Notice of the State Administration of Taxation on the Value-Added Tax Exemption Policy for Interest Income from Loans to Small and Micro Enterprises by Financial Institutions”, which stated that since September 2018 From November 1 to December 31, 2020, interest income derived from small loans issued by financial institutions to small enterprises, micro-enterprises and individual industrial and commercial households will be exempt from value-added tax.
Textile companies are affected by the trade war The biggest ones must be those small and micro enterprises that are isolated and helpless. The tax cuts and fee reductions and loan incentives announced in this notice may be the best gospel for small and micro businesses that have been hit “tottering”.
, most small businesses will be powerless when facing unprecedented challenges. After all, we do not have a stable ‘cornerstone’ like large companies as a foundation, so this time the country’s tax cuts and fee reductions and encouraging loans for small and micro businesses are our It is an important pillar to continue to go forward and is a great joy for small businesses in the near future.”
Conclusion: This year, we have experienced an unprecedented trade war. It is absolutely impossible that there will be no impact, but don’t worry, because we will definitely be able to withstand it!
</p
