China : Govt allots 1.36bn yuan special funds for textile sector

To speed up the transformation of economic growth mode in domestic textile industry, Zhang Li, inspector of the Economic Operations Bureau of the State Development and Reform Commission, disclosed that since last year, the state has established the total amount of 1.36 billion yuan of special funds for ‘textile industrial restructuring and growth mode transformation’.

She added, “The state would also actively explore the establishment of a long-term mechanism in future.”

Zhang speaking at yesterday SDRC ‘press conference on 2006 economic performance’, said, “In recent years, the textile industry has also been faced with severe challenges, such as resources, environmental constraints and increasingly fierce competition in international market.”

Regarding the special funds, she further explained that last year the state imposed total textile tariffs of 1.36 billion yuan on textile industry. Recognizing that textile industry is facing trade restrictions but is a major revenue generator, state has allotted special funds for this sector.

Part of the funds will support textile enterprises that set out to establish textile industrial parks, while the other part will be used to back innovations and industrial restructuring.

The total size of the special funds is 1.36 billion yuan, of which 800 million will support ‘out-going’ enterprises and 560 million yuan will support innovations in textile industry

She said, “It should be said that at this stage, this policy is still a one-time subsidy. Taking into account the arduous task of textile industrial restructuring in 'the 11th Five-Year Plan' period, we also hope that we could co-operate with the departments concerned, and actively explore the establishment of an effective mechanism.”

Zhang pointed out, “As one of the major pillar industries, currently textile workers of scale enterprises accounts for about 15 percent of the total employment in the nation. Industrial added value accounts for seven percent of the total national industrial added value, exports account for 15 percent of the national exports.”

 
Fibre2fashion, News Desk - China