Policies to Further Support the Transformation and Upgrading of the Textile and Apparel Industry
2023-09-28 00:00

Original Title: Notice from the Office of the People’s Government of Fanchang District on Issuing Policies to Further Support the Transformation, Upgrading, and Development of the Textile and Apparel Industry

To accelerate the transformation and upgrading of textile and apparel enterprises across the district, focus on enhancing key capabilities such as branding, design, and market development, and implement a differentiated development strategy, the District Government has decided to vigorously guide and support apparel enterprises in “expanding product varieties, creating brands, and improving quality” to achieve the transformation and upgrading of the textile and apparel industry. In light of the actual conditions of our district, the following policies have been formulated.

I. Eligible Entities

Legally registered textile and apparel enterprises conducting business operations within the district.

II. Support Measures

(1) Encouraging Enterprises to Grow and Strengthen

1. Encouraging Enterprises to Reach New Revenue Milestones. For textile and apparel enterprises whose annual operating revenue reaches the relevant reward threshold for the first time, an additional 20,000 yuan will be awarded for each tier, on top of the standard rewards for the “Industrial Enterprises High-Quality Development Tiered Competition.” Additionally, a new 50 million yuan tier will be established, with a 50,000 yuan reward. (Lead Agency: District Bureau of Economy and Information Technology)

2. Encouraging Enterprises to Pursue a Path of Specialization, Refinement, Distinctiveness, and Innovation. Textile and apparel enterprises newly recognized as Anhui Provincial Innovative SMEs will receive a one-time reward of 50,000 yuan. (Lead Agency: District Bureau of Economy and Information Technology)

(II) Encouraging Enterprises to Secure Financing

3. Strengthen financing guarantee services. For textile and apparel enterprises applying for new financing guarantees using tangible assets as collateral, provided that guarantee risks are reasonably controlled, the guarantee amount shall be determined based on no more than 90% of the appraised value of real estate and 40%–60% of the net value of movable equipment. The guarantee fee rate for both new and existing guarantee projects shall be reduced to 0.5%.For enterprises that produce garments through self-procured fabrics, pattern-making, and garment manufacturing, with garment sales exceeding 100 million yuan, and which are approved by the District Local Finance Bureau in conjunction with the host entity, the guarantee fee rate for both new and existing guarantee projects will be reduced to 0.3%. The District Finance Bureau will provide an equal-value subsidy for the above. (Lead Agency: District Local Finance Bureau; all towns and Fanchang Economic Development Zone)

4. Reduce financing costs. For textile and apparel enterprises that obtain actual new loans from banks within the district or transfer loans from banks outside the district to banks within the district, with a loan term of one year or longer, a one-year loan interest subsidy will be provided at 50% of the current LPR rate (not exceeding 50% of the actual loan interest rate), with a maximum subsidy of 500,000 yuan per enterprise.Enterprises that produce garments through self-procured fabrics, pattern-making, and garment manufacturing, with garment sales exceeding 100 million yuan, and which are approved by the District Local Finance Bureau in conjunction with the host entity, shall be granted a three-year loan interest subsidy equivalent to 50% of the current LPR rate (not exceeding 50% of the actual loan interest rate), with a maximum subsidy of 1.5 million yuan per enterprise. (Lead units: District Local Finance Bureau, all towns, and Fanchang Economic and Technological Development Zone)

(3) Guiding Collaborative Development Among Enterprises

5. Encourage enterprises to participate in and organize exhibitions. Textile and apparel enterprises that provide samples and attend national-level exhibitions hosted by national ministries and commissions, organized by provincial government delegations, or organized by municipal and district governments, as well as those that independently participate in well-known domestic professional exhibitions, will receive subsidies of 10,000 yuan and 8,000 yuan per enterprise for exhibitions outside the province and within the province, respectively. Enterprises exhibiting overseas will receive a 50% subsidy on booth fees, with a maximum subsidy not exceeding 50,000 yuan.(Lead Agency: District Commerce Bureau)

6. Encourage Vocational Training. Textile and apparel enterprises whose management personnel and skilled workers participate in knowledge training programs organized by government departments or provincial-level and above industry associations will receive a 50% subsidy on training costs (including travel expenses), with an annual subsidy cap of 10,000 yuan. (Lead Agency: District Bureau of Economy and Information Technology)

(IV) Encouraging Enterprises to Improve Quality and Efficiency

7. Encourage technological upgrades and improvements. Strengthen publicity of policies at all levels regarding investment in technological upgrades, guide eligible enterprises in applying for such policies, and encourage textile and apparel manufacturers to optimize processes and enhance production efficiency through measures such as automation and the integration of informatization and industrialization. Enhance R&D and design capabilities. Improve R&D capabilities for the application of new materials, such as functional fabrics, and support enterprises in establishing technical R&D institutions such as technology centers. Relevant support policies shall be implemented in accordance with the latest provisions of the “Smart Manufacturing City” (Fanchang Section) policies.(Lead Agency: District Bureau of Economy and Information Technology)

8. Encourage apparel design and pattern making. Encourage professionals in the textile and apparel sector to register and establish apparel design and pattern-making studios or firms in Fanchang District to provide design and pattern-making services to enterprises. For design-driven orders exceeding 500,000 yuan per style, upon approval by the District Bureau of Economy and Information Technology, a reward of 10,000 yuan will be granted to the design unit per style. No duplicate subsidies will be provided for the same style, and the annual subsidy for each design unit shall not exceed 100,000 yuan.(Lead Agency: District Bureau of Economy and Information Technology)

9. Support for Enterprises Obtaining Relevant Qualifications. Enterprises that obtain qualifications for the first time—such as military apparel procurement eligibility (for enterprises that pass the assessment), inclusion in the supplier directory for fabric enterprises on the Military Procurement Network, designation as a designated manufacturer of police uniforms for the Ministry of Public Security, designation as a manufacturer of police uniforms for the judicial administration system, authorization as a manufacturer of security guard uniforms by the China Security Association, or certification of the Work Safety Mark for Special Labor Protective Equipment—and that establish professional after-sales service teams to provide high-quality services will be granted a reward of 50,000 yuan per enterprise upon confirmation by the District Bureau of Economy and Information Technology.(Lead Agency: District Bureau of Economy and Information Technology)

(V) Encouraging the Development of E-commerce

10. Enterprises achieving annual online sales of 10 million yuan, 50 million yuan, or 100 million yuan for the first time will receive one-time rewards of 50,000 yuan, 100,000 yuan, and 200,000 yuan, respectively (annual online promotion expenses must not be less than 50% of the corresponding reward amount). For textile and apparel enterprises with online promotion service fees exceeding 50,000 yuan, a subsidy of 10% will be provided, with an annual cap of 100,000 yuan. (Lead Agency: District Commerce Bureau)

(6) Encouraging Enterprise Brand Building

11. Enterprises are encouraged to create distinctive apparel categories and brands. For brands newly established after January 1, 2022, a one-time brand development subsidy of 500,000 yuan, 1,000,000 yuan, or 2,000,000 yuan will be granted when annual sales first reach 5 million, 10 million, or 20 million yuan, respectively. If multiple thresholds are met in the same year, the subsidy will be granted for each tier. (Lead Agency: District Bureau of Economy and Information Technology)

12. Encourage enterprise brand promotion. Textile and apparel enterprises that expand brand awareness through promotional activities and participate in advertising campaigns on provincial-level or higher television and other media will receive a subsidy from the district government equivalent to 10% of the advertising expenses, with a maximum of 50,000 yuan per enterprise per year. (Lead Agency: District Market Supervision Bureau)

Where policies within this framework overlap with other municipal or district policies, the higher benefit shall apply, and benefits shall not be duplicated. For the same equipment or project of a single enterprise, only one subsidy policy may be claimed; duplicate applications are prohibited.

Specific issues arising during the implementation of these guidelines shall be interpreted by the relevant departments in conjunction with the District Finance Bureau. This document shall take effect from the date of issuance and remain valid until December 31, 2025. A policy evaluation shall be conducted annually to adjust and optimize the relevant measures. The original “Policy Opinions of the Fanchang County People’s Government on Supporting the High-Quality Development of the Textile and Apparel Industry” (Fanchang Zheng [2020] No. 26) is hereby repealed.


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