5. Reduction of two percent export tax rebate, this year, is another unfavorable factor, which will lead to decrease of refund worth US $240 million.
6. The other major conditions in situation will not witness drastic improvement; production costs will increase by 18 percent.
Finally, Zhu stated that the future of China's annual cotton spinning capacity would be maintained at a higher level. With the improvement of people's living standards, the domestic market will continue to enlarge the number of products. Cotton yarn and cotton usage ratio will not be reduced. Meanwhile production loss will be lowered with equipments upgrade during the past few years.
She stressed that the industrial development should mainly focus on product structure readjustment and limit export of primary products.
Fibre2fashion, News Desk - China
marketing@alchempro.com
