“span id=”lblArticleBodyText”>”The country has already increased tax
rebates for the industry three times since last August. The new
increase to 16% will be effective from 1 April, the Ministry of Finance
said on Friday (27 March). .
“It applies to fabrics and garments made from silk, wool, cotton, and
man-made fibres, including both knitted and non-knitted clothing. .
“Rebates for leather products such as coats, belts and gloves will increase to 13%. There is no subsidy on shoe exports..
“Exports account for about a fifth of China’s GDP and are important
for employment, said Liu Jing, finance professor at Cheung Kong
business school in Beijing. .
“But so far increasing subsidies “hasn’t helped much”, he said. “Exports are dropping pretty significantly..
“China’s textile and garment exports dropped 32.9% in February
compared with the previous month, according to China customs. Weaker
demand is also pushing down prices and profits. .
“In China’s southern manufacturing zones, more than 2,000 garment
factories have closed or delayed operations, estimates Willy Lin,
chairman of the Hong Kong Knitwear Exporters & Manufacturers
“Some larger factories are getting more business as retailers start to restock inventory in a market with reduced supply. .
“More orders are going to the bigger factories,” said Delina Deng,
export manager at Monartex. “The smaller ones have all closed..”/span>