According to Chinese press reports, China's textile industry is faced with crisis, the textile industry profit rate is generally lower than the financing cost. In 2011, jiangsu and zhejiang more than 30% of the textile and clothing companies report out of business.

Rising labor costs are the most mentioned many times by the textile industry in difficult a reason. Low technology content and Labour intensive production speed up production area move to cheap, such as Cambodia, Vietnam, eastern European countries, Bulgaria and Poland.

The personage inside course of study also commented that, enterprise tax burden, too much. For example, processing product sales tax (17%) and cotton consumption tax (13%) get the difference between the compensation.

Cotton production enthusiasm drop, textile industrial optimism is abate, despite recent announcement by the purchasing price next year, but not enough to offset the increase is expected production costs and increasing farmers' income, therefore, farmers to grow more lucrative crops. According to previous reports, shandong province farmer expected Texas this year, cotton planting area decline was not less than 25%. Earlier this week, the China cotton association farmers branch do the second survey forecast, the planting area will be reduced by 16.7%.

The personage inside course of a few months to the prospect of future appears quite pessimistic, due to various reasons, especially the needs of the eurozone countries with poor prospects. So there are calls for more tax cuts.

Yesterday, the national bureau of statistics report, this year the whole textile industry (over the scale enterprise) profitability fell sharply. Different from the 2009 contraction, was caused by the financial crisis of the temporary phenomenon, and this time the energy and labor and other production costs rise, lead to more problems. Consumer price controls to countries in enterprise it difficult to recover the cost of higher.

Reprint this net ZhuanGao please indicate the source "Chinese textile nets"

Editorial: Ashcol