Cotton Spinning Enterprises Sigh For Cotton Policy

< p > < a href= > //www.sjfzxm.com/news/index_c.asp > cotton spinning < /a > policy, enterprises sigh.

Although administrative means are the most immediate means of regulation, various administrative interventions based on love and care cause greater harm to the market and enterprises.

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Less than P, September 2014, the cotton temporary storage system will end, and thousands of Yuan's domestic and foreign Khmer price differentials are expected to narrow.

But many cotton textile enterprises reflect to reporters, or "to escape", the factory moved to Southeast Asia, Africa, the boundaries of the United States.

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< p > since the policy is good, why should the enterprises "escape"? An entrepreneur said the original story. "A series of cotton policies, including import quotas, are like the dammed lakes on the top of the enterprises. Sooner or later, they will be fatal.

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< p > < a href= "//www.sjfzxm.com/" target= "_blank" > textile < /a > industry is China's earliest participation in international competition and has achieved strong comparative advantages.

Cotton is a commodity that can be freely traded on the international market.

However, highly marketable Chinese cotton spinning enterprises can not freely use domestic and foreign two markets to freely deploy cotton resources and stabilize costs.

Because China's cotton market has also retained the practice of planned economy.

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< p > plan will never catch up with change.

The original intention of various cotton policy formulation is to reduce the impact of imports on the domestic market, prevent cotton prices from rising and falling, and protect the interests of vulnerable cotton farmers.

However, compared with the age of import quotas, China's cotton textile production capacity has increased by more than 4 times, and the quota quota can not make up for the gap between supply and demand. Most enterprises need to pay a sliding tax of up to 40%.

Compared with the initial establishment of the purchase and storage price, the cotton price of the government has now exceeded the international market price of 5000 yuan per ton. The enterprises have to import cotton into imported cotton yarn, resulting in the shrinking of China's cotton planting area and the decline of cotton quality.

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< p > the tragedy of the cotton spinning industry is the epitome of "market" paying for the "plan".

The reason why market economy is more efficient is that in a market economy, the price is formed voluntarily between managers, producers, consumers, and owners of production factors.

Such prices can promote rationalized division of labor, automatically regulate supply and demand, and guide all participants to maximize benefits at the lowest cost.

The so-called quota system and the system of collecting and storing have proved that no matter how good the intention is, the price of cotton distorted by administrative means can not truly reflect the scarcity of resources and the change of supply and demand relations. It has weakened the ability of enterprises to judge the market and resist risks. Finally, only a large number of indicators have been lost, which has destroyed the international competitiveness of China's textile industry and handed over the market to competitors.

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< p > to retain high-quality enterprises and develop the real economy, governments at all levels want to do more, but the government must "do something and do something".

The government is a referee, not a parent, and can not always regard the industry as a child.

Although administrative means are the most immediate means of regulation, various administrative interventions based on love and care cause greater harm to the market and enterprises.

Especially in the increasingly high degree of industrial linkage and the increasingly profound globalization of resource allocation, the administrative protection of any single industry is likely to cause a serious blow to other public industries.

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< p > truly good quality enterprises are well versed in "finding mayor" rather than "looking for market".

Compared with financial subsidies, land concessions and other policies, what they need more is a fair competition environment, and the most important foundation of this environment is to let the market play a decisive role in the allocation of resources.

As for how to resist the strong winds and waves in the market, especially the ups and downs of factor prices, there are plenty of hedging tools in the market. For example, hedging in futures market is a good choice.

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< p > nowadays, temporary storage has changed to cotton farmers' subsidies. Cotton < a href= "//www.sjfzxm.com/news/index_q.asp" > policy < /a > has taken a big step towards marketization under the condition of taking into account the interests of farmers.

Increasing and phasing out quotas should be put on the agenda as soon as possible.

After all, the "investment" conditions in overseas markets are quite tempting. To keep good companies, the government must have a good pulse.

Just as some of the veterans who seek to "escape" say, "the government really doesn't need to ask me what concessions do I need to stay. We don't want anything, just relax and give us freedom."

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