BEIJING, Aug. 7 /Xinhua-EMWNews/ -- The ministry of Finance and

State Tax Bureau declared it will adjust the export rebate rate of some

goods. Some textiles and garments' export rebate rate has risen from 11% to

13%. The rebate rate of some bamboo products has risen to 11%. This is

great news for the textile industry (

http://www.tootoo.com/category_nine29000000.html/Textiles_Leather_Products

) which needs to become more competitive.



    



    Separately, textile information in Tootoo.com ( http://www.tootoo.com/

) shows that the decreasing international demand, rising prices for raw

materials, fast RMB revaluation and rising cost of labor is forcing

increased operation costs. The increased export rebate rate is helping to

lighten the squeeze that the textile industry is facing. It can also

relieve the financial shortage and support the healthy development of small

and medium enterprises. It also demonstrates that exports have increased

21.9% to 66 in the first half-year, but it fell about 5.7% compared to the

corresponding period of last year.



    It is speculated that the total profit of textile and garments (

http://www.tootoo.com/buy-garment/ ) may reach 184.7 billion this year. A

two percent callback of the export rebate rate can help textile industries

increase profit by about 17 million RMB. Though the adjustment is a great

help for the textile industry, enterprises are still not optimistic about

the future because of the rising loan rates and exchange rate, and the

increasing cost of materials and labor.



    The RMB appreciation has become the greatest squeeze, even European

customers insist on paying in dollars. Appreciation can reach about 5% in a

three-month period, but the average profit is only 3%



    Insiders think that though the adjustments can relieve the recent

industry squeeze, the benefit will be counteracted by the RMB appreciation.

The fundamental problems haven't been solved, such as increasing production

costs, stressed credit market conditions and weak demand.



    In addition, the benefit cannot be enjoyed by all the national

enterprises. Because of national enterprising's poor bargaining ability,

the overseas purchasers will receive some of the benefits.