2011: Macro Policy Boost Textile Pformation And Upgrading

In December 26, 2010, the people's Bank of China raised the benchmark interest rate for deposits and loans, which showed the country's determination to curb inflation.

In 2010, we implemented "active fiscal policy" and "moderately relaxed" policy.

The central economic work conference held at the end of last year set the tone for the 2011 macroeconomic policy, that is, in 2011, China will implement prudent monetary policy while continuing to implement the proactive fiscal policy.

The dual fiscal and monetary policy has changed from "positive and moderately loose" combination to "positive and steady" in the past two years. This change is meaningful.

At the same time, the central government also stressed the need to manage inflation expectations while maintaining steady and fast economic growth.

We should change the way of economic development and accelerate the adjustment of economic structure.

Maintaining stable and rapid economic development and promoting social harmony and stability are becoming the main keynote of a new round of policy regulation in 2011.

This is obviously not a simple policy adjustment, but rather a deep reform in the face of pformation. It really ignites our new hope for future development.

Chen Dongqi, vice president of the national development and Reform Commission's Macroeconomic Research Institute, thinks that in the short term, China's economy is still in a downward trend in the small cycle. This trend is an amendment to the excessive rise, which will slow down the steep decline.

In the medium to long term, China's economy will gradually enter a new round of rising cycles and "super prosperity".

China's prudent monetary policy is aimed at preventing inflation and asset bubbles, not at the expense of economic growth and employment reduction.

Traditional industries such as textiles will usher in a new development opportunity in the national macro policy and the strong rebound in the world economy.

Last December 26th, the people's Bank of China raised the benchmark interest rate for deposits and loans. This is another two month increase in interest rates after the first increase in interest rates, indicating the state's determination to curb inflation.

Relevant departments of the state have recently introduced measures to regulate prices, indicating the "pertinence and flexibility" of the national monetary policy.

Some experts predict that in the first quarter of 2011, the deposit reserve ratio and interest rate may also be adjusted, and the worry that prices will go too high in 2011 will be reduced.

At the same time, the central economic work conference clearly pointed out that in 2011, credit funds should be invested more in the real economy, especially the "three rural" and small and medium-sized enterprises.

Although prudent monetary policy will have an impact on credit in 2011, the credit speed may slow down and the scale may shrink. However, the credit policy supports the formulation of "three rural" and small and medium-sized enterprises, which has a sunny effect on the textile industry, and it is good for the industry as well as an opportunity.

The industry has reason to expect that this policy can bring substantial benefits to the textile industry dominated by small and medium-sized enterprises.

The change of the RMB exchange rate is also the focus of attention in the textile industry.

From the keynote set by the central economic work conference, the RMB exchange rate formation mechanism will be further improved in 2011, and the RMB exchange rate will remain basically stable at a reasonable and balanced level.

The head of the Ministry of Commerce predicts that the RMB will increase in the new year, which means that the fluctuation of the RMB may be larger, but there will be no sharp appreciation. The exchange rate will be kept at a reasonable level.

Considering the multiple factors such as economy, politics and diplomacy, the RMB exchange rate will still maintain a "slight appreciation".

Some experts remind textile export enterprises to master