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Liu Jingfen made the above statement at the exhibitor briefing session of the 23rd China International Plastics and Rubber Industry Exhibition held here. Liu Jingfen said that China's implementation of the VAT reform since January 1, 2009 was considered by the plastics industry as "significantly positive." For production companies, this move will help reduce VAT expenditures and increase profitability. The plastics industry is a capital-intensive industry. Under the background that the whole industry is facing financing difficulties, the VAT reform is equivalent to a “blood transfusion†for the enterprise, which can relieve the pressure on the company to a certain extent and slow down the transmission of price increase factors to the downstream or final consumers. . For many plastics processing companies facing product upgrading, VAT transformation is conducive to stimulating the improvement of technology, the use of advanced equipment, and the improvement of innovation and market competitiveness, thereby promoting the optimization and upgrading of the entire industry.
Liu Jingfen said that at the end of 2008, China adjusted its export tax rebate rate, and the export tax rebate rate for some plastic products increased from 5% to 9%. Plastics companies ushered in a glimmer of dawn. The "Expanding Domestic Demand and Maintaining Growth" plan, which totaled as much as 4 trillion yuan in November last year, provided the plastics industry with a huge market opportunity.
Liu Jingfen analyzed that both the affordable housing project and the reconstruction of the quake-hit areas mean a huge market demand for the plastics industry. Among them, a variety of buildings require a large number of plastic building materials, including water pipes, doors and windows profiles, wire and cable, all kinds of decorative materials, household appliances, household insulation materials, as well as building seals, roof waterproof materials.
In addition, the construction of infrastructure and water conservancy facilities requires plastic pipes of various specifications, such as wire and cable pipes, communication pipelines, municipal pipelines, and various municipal signs. The agriculture and water conservancy construction will require a large number of plastic sheds and various plastic pipes for agricultural irrigation. The construction of medical facilities also has a considerable demand for a large number of equipment and instruments, medical plastic products and packaging materials. At the same time, the Chinese government has successively introduced measures to promote enterprises to accelerate independent innovation and technological progress, and will also bring new business opportunities to the plastics industry, processing machinery, production line configuration, and upgrading of control systems.
Macro adjustment policy has a positive impact on the plastics industry
The global financial crisis has spread to the real economy, and industries including the plastics industry are inevitably affected. Liu Jingfen, deputy chairman and secretary-general of the Shanghai Plastics Industry Association, recently stated in Shanghai that the Chinese government's macroeconomic policies such as the VAT reform reform have had a positive impact on the Chinese plastics industry.