The state increase in export tax rebates on sewing machines and other electromechanical products

Since the end of 2008, the government adjusted the export tax rebate of the sewing machine three times, adjusted by the end of 2008 to early 2009, the export tax rebate rate adjust 17%, the intensity and frequency have increased. This time the policy adjustments will benefit to the industry export enterprises who want to reduce export costs and improve the international competitiveness. Countries have adopted the policy of support for the sewing machine industry to reduce the industry the adverse effects because of the RMB exchange rate increased raw material and labor costs increase caused by the decline in exports in the active support of policy-oriented guide. It also has a positive effect to improve the confidence in the industry.

The fundamental factor restricting the development of sewing machines is demand. 80% of the global household Sewing Machine concentrated in Europe and the United States, while 60% of industrial sewing machines in China. Due to a drop in demand for U.S. and European markets, the lack of independent innovation capability, coupled with the rise of the RMB exchange rate and the volatility of raw materials, sewing machines exported fall into a depressed state. Long time, China's industrial sewing machine industry product is serious homogeneity. According to customs statistics, the 2008 China Industrial Sewing Machine The average export price is $ 250 / units, over the same period the average import price is $ 2300 U.S. dollars / units. 

Chinese sewing machine product is very different in terms of product structure, technical content and added value of foreign high-end sewing machines. We believe that the short-term external demand is difficult to pick up, overwhelmed by the export tax rebate rate adjustment is some extent conducive to alleviate the pressure of the industry's export costs, have a stimulating effect on exports, but the effect is relatively weak.

Give a "neutral" rating on the sewing machine industry

Due to internal and external demand Atrophy for sewing machines, as well as the technological content of products and value-added weaknesses in the industry, the industry is currently in a recession, the future developments still need to focus on the pull of the internal and external demand and the adjustment of the product itself. Industry in the cyclical bottom of wandering, difficult to recover in the short term, thus giving a "neutral rating"