In March, the relevant national policy news is frequent, and the development of the cotton spinning industry may have new changes. The following will be a brief analysis from the recent hot spots.

On the morning of March 5, the second session of the 13th National People's Congress was opened, and Premier Li Keqiang made a report on government work. The report clearly pointed out that deepening the VAT reform will reduce the current 16% tax rate of industries such as manufacturing to 13%, and reduce the current 10% tax rate of the transportation industry and construction industry to 9%, ensuring a significant reduction in tax burdens in major industries. In the case of yarn companies, the cost of purchasing raw cotton after tax reduction can save 300-500 yuan / ton. Therefore, this tax reduction will undoubtedly help cotton-weaving enterprises to save operating costs and provide guarantee for the development and competitiveness of the entire textile industry.

On March 11, Wang Wei, deputy general manager of the National People's Congress and Shanghai Textile Decoration Co., Ltd., suggested during the two sessions to deepen the reform of imported cotton quota management and explore a new model of “government guidance + platform support + market operation”. In particular, it is stated that “under the premise of basically maintaining the existing policies, that is, maintaining the application of 50,000 or more enterprises and the designated import of state-owned trading enterprises, the annual quota for the import of certain quotas is For small and medium-sized textile enterprises with a production scale of less than 50,000 spindles without separate declaration qualifications, a special pilot program for the centralized management of imported cotton quotas for small and medium-sized enterprises was launched. This may be a new direction for the future reform of imported cotton quotas, which will benefit the entire cotton spinning industry.

In recent years, there have been more and more voices on the issuance of cotton import quotas. Under the current situation of contradiction between cotton production and demand, it is imperative to increase the effective supply of cotton. With the decline in stocks of reserve cotton, whether to increase quotas, and to take into account the needs of small and medium-sized textile enterprises when quotas are issued, it is worthwhile to look forward to and consider more effective quota implementation mechanisms.

Recently, there have been various speculations about the reserve cotton rotation, which reflects the market's recognition and dependence on the demand for reserve cotton and regulation policies. Whether or not it is round, the role of the reserve cotton in stabilizing the market will not change. From this perspective, there is no need to over-interpret all kinds of conjectures about reserve cotton. In addition, 2019 is the last year of the three-year implementation period of Xinjiang cotton target price. How the target price will be formulated this year will have a profound impact on the future development of the cotton market. It is believed that the benign development policy of the cotton spinning market will gradually land, and this 2019 is worthy of the industry's expectation.