September 28th, 2016 - The PRC Ministry of Industry and Information Technology announced a version of the 13th Five-Year Plan specifically to promote improvements in the cotton and textile industries. Both financial instruments (grants, tax breaks, credit channels, etc.) and direct supply controls will be used to achieve the goals of the plan. The plan will apply for the length of the national 13th Five-Year Plan Period: 2016-2020.



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PRC Ministry of Industry and Information Technology, September 28th, 2016. (工业和信息化部关于印发纺织工业发展规划(2016-2020年)的通知)

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State aid, nes

On the 28th of September, 2016, the PRC Ministry of Industry and Information Technology announced its implementation of the PRC's 13th Five-Year Plan in the textile and cotton industries. The plans main aims include a target of supporting the then current growth level of 6-7%, as well as maintaining the strength of the Chinese textile market, both domestically and overseas.

The MIIT's plan calls foresees channelling existing government funds towards the textile industry. In particular, additional funds shall be used to support scientific and technological innovation, technological transformation, intelligent manufacturing, green manufacturing, brand building as well as the construction of an industry service platform.


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Import quota

To support the textile industry, the plan also calls for an "improved" management of the cotton import quota system to ensure sufficient supply of high-quality cotton for the textile industry.

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Tax or social insurance relief

Besides financial support, the MIIT's plan also envisions the use of preferential tax policies. The plan propose to rebate property taxation as well as social insurance relief.

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Price stabilisation

The plan also foresees policy interventions to ensure adequate domestic cotton supply for the textile producers. According to the plan, government bodies should maintain cotton reserves and establish price stabilisation policies.

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To promote domestic production of high-quality cotton, the Plan also calls for the use of trade remedy measures, where appropriate.

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Production subsidy

As a final avenue of support to high-quality domestic cotton production, the plan calls for financial subsidies related to cotton production including support for seed cultivation and technological upgrading.