In order to promote the production of textile machinery, the state adopted a series of policies designed to encourage development of technology in the sector. Some of the key raw materials shall be exempted from import tariffs or payment of import VAT policy.
From November 1, 2006 onwards, import duty on the spinning machine will be between six to zero percent. This chief product list will also include Shedding electronic jacquard devices, tax on which will be timely and appropriately reduced.
While this a good news for textile industry, it will create unfavorable situation for machine industry.
However, the state has also given financial support to the key projects in the equipment industry.
With many international textile machinery stationed in the China, the competition among state-owned, private and foreign-funded enterprises continues to intensify, generating major difficulties on both management and financial levels.
Fibre2fashion, News Desk - China
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