There are unfair competition among different regions and enterprises due to the different degrees of law enforcement on labor security and environmental protection.
Industry must step up structural adjustment of raw materials to realize diversified supply of raw materials, and development of textiles for medical, auto, construction and filter use.
In order to optimize regional distribution of textile production to control expansion of production capacity of cotton and chemical textiles in coastal areas and central cities, and to shift them to central and west regions by making use of local resources, the country must formulate more efforts.
The country must give strong support to fostering a group of enterprises with advantages in brand designing, technical R&D and market channels, and encourage development of brands, trying to form several brands of China intellectual property rights with international influence.
The circular declares that economic, legal and necessary administrative means will have to be used in the adjustment of the textile industry.
The taxation policy would encourage enterprises to carry out technical innovation, direct enterprises and the public to increase input of funds in science and technical development, support enterprises to set up technical R&D centers.
To continue giving support to textile projects encouraged by the Indicative Catalog of Industries for Structural Adjustment, strictly control and ban investment in those that shall be restricted and rejected, and step up rejection and ban relocation of outdated equipment.
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