Causes Of Textile And Garment Industry'S Decline In EU Exports

The EU wants to manage more, and it cares too much about others.

If the trade friction between China and Europe mainly occurred in the field of goods trade before the world's macroeconomic downturn, it has now extended to the field of service trade, intellectual property and investment.

Premier Wen Jiabao recently conducted a 24 hour visit to the European Union.

At the China Europe Business Summit, Jurgen Thumann, chairman of the European Chamber of Commerce, delivered a crystal galloping horse to the Prime Minister of Malaysia, and wished the future cooperation between China and Europe with success in a German accent.

However, as Wen Jiabao said frankly, China has worked hard for many years to recognize China's full market economy status and so on.

And one of its consequences is the endless anti-dumping and countervailing lawsuit.

According to the latest "double anti" Statistics released by the European Union, the EU launched 9 new trade surveys (7 anti-dumping and 2 countervailing) in the first 7 months of 2012, of which 4 were targeted against China.

According to the General Administration of Customs of China, total exports in China increased by 7.8% from 1 to July this year, while exports to the EU decreased by 3.6%.

In August this year, China's exports to the EU dropped by 4.9%, and the sharp decline in exports led to a decline between China and the European Union.

The total fell 1.9% year-on-year.

The EU is China's largest trading partner for 8 consecutive years. Import and export trade is an important barometer of China's economy. What kind of economic structure is reflected in the European market? What kind of impact will the slowdown have on the two sides?

The market suddenly changed.

The European Commission headquarters suddenly held a press conference and declined all video recording and news source quotations.

One minute before the opening ceremony, the staff also blocked a video camera set up by a Chinese TV reporter.

On the same day, the European Union announced that it will launch anti-dumping investigations on photovoltaic products exported to China, including photovoltaic panels, photovoltaic cells and other PV modules.

Due to the amount of more than 21 billion euros, the survey has become the world's largest single trade survey involving the largest amount of money.

The world's top media came to the conference on that day.

The EU anti-dumping law stipulates that the annual output of the litigants is 25% higher than that of the EU industry, so that the anti-dumping investigation procedure can be initiated.

To this end, the European Union of photovoltaic industries (EUProsun) has spent a lot of efforts to unite small businesses scattered in member countries and lobbied for EU policymakers.

The investigation will last for 15 months, but the EU is expected to make a preliminary decision in 9 months' time (June 2013), when it may impose provisional anti-dumping duties on Chinese products.

The EU's anti-dumping investigations on China's photovoltaic industry and China's double anti EU wine survey are only a small section of Sino EU trade.

Anti dumping or countervailing is not new for China EU trade relations; once the economy is in recession, such trade friction will enter a high incidence period.

In April, I interviewed an outside hospital who was close to European policy-making. He then revealed that the European Union might export its products to China.

A number of international economic organizations are not optimistic about this year's macroeconomic trend. For example, in the world economic outlook, IMF predicts that the global economic growth rate in 2012 will be 3.5%, and the euro area economy will shrink by 0.3% this year.

Since the outbreak of the European debt crisis in Greece in October 2009, European debt has reached the threshold of 3 years.

The euro area is now facing another test because of the reignition of several fires, such as Spain's nearly 30 billion euro debt maturity in October.

Although the European Union has occasionally issued a policy to fight chicken blood in the market, the fundamentals of the crisis such as economic growth prospects are dim, debt and deficit remain high and euro's institutional defects are not fundamentally improved.

Weak purchasing power in Europe and the United States and other major markets, the external pmission of the crisis has brought external challenges to the Chinese economy. Its influence is no longer the butterfly's wings, and the wind power is comparable to that of the princess of the iron fan.

The US version of Europe?

Just the same day when the European Union announced that it was going to move on to photovoltaic products, there was actually another explosive news.

The European Central Bank announced a new Treasury bond purchase plan called "direct currency trading scheme", announcing "unlimited purchase" of treasury bonds, and recovering the liquidity resulting from it to prevent inflation.

The European Central Bank has been coy about whether to bear the "last borrower". This statement conveys a strong signal: as the EU has seen the sharp attack of the excessive virtual economy on the economic fundamentals, recognizing that the intervention of the capital market will make the risk more and more commercialization, it began to imitate the government intervention in the Mexico crisis of 1995 and the Asian financial crisis in 1998.

European Union prime minister and Barroso, the European Commission President, even further urged the European Union to establish federalism and centralization of power by Member States to create the "American version of Europe".

This means that Member States need to pfer more sovereignty and need to sign more agreements outside the Lisbon treaty, which has been wrangling.

In fact, the EU has embarked on the reform of the economic regulatory system. "Giant's hand" is more involved in the financial market on the one hand, and calls for the establishment of the "European Banking alliance"; on the other hand, it extends in the field of international trade and acts as a foreign reunification.

Karel Degut, a member of the European Union responsible for trade affairs, has always claimed that "there is a serious imbalance in Sino EU trade and has caused damage to the world economy", and believes that the EU should intervene more and take a tough stance.

Trade frictions between China and Europe, if they occur mainly in the field of goods trade before the world's macroeconomic downturn, has now extended to the fields of service trade, intellectual property and investment.

However, it is quite clear that the EU believes that non-tariff barriers, such as capital, technology and environmental standards, are the main reasons for the friction between import and export trade, that is to say, the EU will also attribute the cause to the Chinese government's "giant hands".

The EU wants to manage more, and it cares too much about others.

What is the difference between a knife and a knife? Can you tell the difference between the water before the knife and the knife? In the 1549 public welfare, there is such a sentence: "we do not buy more from foreigners than we sell them, which will make us rich and poor."

As early as eighteenth Century, Adam Smith criticized the mercantilists as "trade balance" to encourage exports and prevent imports.

We do not want the European debt crisis to be counterattacked by this revival trend of thought.

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Diversion and pformation

China and the EU are at different stages of different development models. It is not surprising that they have different demands in intercontinental trade.

According to the American scholar Peng Mulan, China and Europe had been in a similar historical take-off point around 1500.

He made a detailed comparison from the perspective of economic history in the Great Divergence: the formation of Europe, China and the modern world economy, and found that England in early sixteenth Century had striking similarities with China's Yangtze River Delta.

With the growth of trade and the expansion of international shipping, formerly isolated regions and trade were linked.

The subsequent two regions have dramatic dramatic diverts, respectively, on the two distinct roads of capital intensive and labor intensive: the North Atlantic (600558, stock bar) the world has chosen the social development model of high consumption, high energy utilization and high productivity, and the rapid growth of China's population and the demand for resources bring labor intensive organization.

It is the combination of complementary development types in Western Europe and East Asia that make the greatest contribution to world GDP.

The structure of foreign trade reflects the international division of labor and helps us see clearly its own economic structure.

The two modes of economic development after the split are now seeking pformation and competing to increase the proportion of high value-added products, especially high-tech products, in the export structure.

If 5 centuries ago, China's exports to Europe were mainly high value-added lilac and superior spices, such as sugar, tea and tobacco, China's export structure to Europe has changed a lot.

According to the European Bureau of statistics, the largest export volume of China's exports to Europe in 2011 was in the form of semi manufactured products, office and communication equipment, electronic and non electronic energy equipment, textiles, and so on.

Personal and household items.

Although the largest proportion of machinery and pport categories in customs reports is the highest, accounting for 49.1%, of which only 3.5% of pport items are detailed, and office and communication equipment with lower economic value accounts for 31.5% of total exports.

At present, China's trade in products is surplus to Europe, while service trade is deficit.

In addition, European companies are jealous of the fact that Chinese counterparts receive large amounts of financial support from state-owned banks.

European enterprises complain that China has been able to expand rapidly, resulting in overcapacity and low labor costs in China, thus enabling it to export at a low cost.

The battle of mouth can not solve the problem. In fairness, compared with the direct subsidy of the state, the European industry support is much more scientific and ingenious.

For example, the Belgian Francophone district has launched its own "Marshall plan" since 2005. It is to adjust the economic structure through the government's leading force. For those industries that should be supported, the government is not directly pfusions, but focuses on capacity-building and training of personnel in the industry.

In this way, even if an enterprise falls down due to poor management, talent can still stay in this industry and contribute to economic development.

If the government often compensates for the serious consequences caused by blind investment, the investor's behavior will not be improved.

Behind the deepening of bilateral cooperation, there must be competition, running in and wrestling in addition to numerous diplomatic efforts.

The rise of new industries, the decline of the old, the changing contents of containers, and whether you want to buy from me today are not the key to the problem. The problem of trade is not the exchange of goods themselves.

If we can see from the new trend of Sino EU trade,

If we make up our mind, we will not donate it in the Tang Dynasty.