With the decline of export tax rebates, the acceleration of RMB appreciation and the increase of labor costs, the textile industry is under heavy pressure. At the same time, textile prices and export growth are in a state of decline, which adds to the pressure on textile enterprises. National Bureau of Statistics recently released data show that in May the ex-factory price of Chinese industrial products (PPI) rose 8.2%, the highest in recent years. Among them, food prices rose 11%, general daily necessities rose 3.9%, while clothing rose only 2.4%. From the sub-species statistics, in the chemical product price category, almost all product prices have varying degrees of rise, while the polyester filament has dropped 4.6%. In addition, consumer prices in China in May CPI rose 7.7%. Still at a high level. Among them, the price of food rose by 19.9 %% while the price of clothing dropped by 1.5% as compared with the same period of last year. Among them, the price of clothing dropped by 1.6%. At the same time, the National Development and Reform Commission data show that the national cotton market brokered transactions in July 2008 contract price 14,405 yuan / ton, down 55 yuan / ton from the previous month, down 0.4%; Zhengzhou Cotton Futures July 2008 contract price 14,178 yuan / Tonne down 386 yuan / ton from the previous month, a decrease of 2.7%. According to the National Cotton Market Monitoring System, by the end of May, the average sales rate of cotton lint enterprises was 75%, down 8.3 percentage points from the same period of last year. The main reason for slow sales is the general capital shortage of textile enterprises, compressed cotton and other raw materials inventory, with the use of buy. In addition, according to the statistics released by the Customs Express, China's textile and garment exports hit US $ 14.4 billion in May, an increase of 9.7% over the same period of last year. January-May this year, China's textile and garment exports 66.2 billion US dollars, an increase of 15.4%, an increase of down 0.2 percentage points. From September last year to May this year, the accumulated export of textile and clothing totaled 128.4 billion U.S. dollars, up 16.7% over the same period of last year and the growth rate dropped by 3.7 percentage points. "The main reason for the slowdown in the growth rate of textile exports is due to the accelerated pace of the RMB appreciation since last year, rising labor and raw material costs, the reduction of the export tax rebate rate and the slowdown of international economic growth, which have made textile development difficult. National Development and Reform Commission said the relevant person in charge. Since September 15, 2006, China's textile export tax rebate rate has been reduced from 13% to 11%. This is the second reduction after the textile export tax rebate rate was cut by 4 percentage points from 17% in 2003. On June 19, 2007, the export tax rebate rate for clothing, luggage, toys and other products was reduced from 13% to 11%, and the export tax rebate rate for viscose fiber was reduced to 5%. At this point, the textile and garment industry exports (except viscose fiber) tax rebate rate of 11%. Under the current premise of inflation, together with the rising costs and the slowdown in the export of Chinese textile and clothing this year, all these have brought a very big blow to the textile industry. Some small and medium-sized textile enterprises are facing the edge of bankruptcy. The situation in the textile industry has a direct impact on the cotton market. According to the monthly report of the National Development and Reform Commission in May, the monthly cotton market shows that in May, the national yarn output was 1.9 million tons, up 12.8% over the same period of last year. From January to May this year, the national yarn output totaled 8.34 million tons, an increase of 11.6% over the same period of last year and an increase of 9 percentage points. From September last year to May this year, China's yarn output totaled 15.45 million tons, an increase of 11.7% over the same period of last year, an increase of 8.6 percentage points. At the same time, cotton imports are also down. According to the statistics of the Customs, in May, China imported 240,000 tons of cotton, an increase of 39,000 tons or 19.4% from the same period of last year; a decrease of 23,200 tons or 8.8% from the previous month; a drop below the average of 275,000 tons in the recent three years. January-May import 1.03 million tons, although an increase of 108,000 tons over the same period last year, but also lower than the average of nearly three years 1.2 million tons. "The textile industry is now experiencing the toughest year in nearly a decade. How can we save the winter textile and leather industry?" For the status quo, the textile industry owner laments. Can be described as "wind uneven, waves are not calm." In view of the current dilemma facing the textile industry, in mid-June a news appeared on the media that the newly established Ministry of Information and Industry recently issued a letter of intent aimed at solving the current dilemma faced by the textile industry and is actively seeking Party views. "Opinions" include the textile export tax rebate rate from 11% to 13%, clothing export tax rebate rate from 11% to 15%, cotton import sliding tax cut to 570-357? Equivalent to 5% to 3% , Which was put into effect on June 5, exempting some import tariffs on textile machinery and automatic winding machines, taking measures to moderate the rate of RMB exchange rate appreciation moderately, and properly solving the problems such as liquidity in the textile and garment industry. Obviously, if the suggestions in the "Opinions" are really supported by the government, it would be a boon to the textile enterprises. However, the moment, everything is still just speculation, the textile industry still have to experience the "cold" torment.