Textiles Are Under Trade Protectionism And Export Products Are Slowing Down.

When emerging industries such as photovoltaics are suffering from internal and external troubles, the dominant industries have also become the targets of foreign trade protectionism.

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On the request of the WTO dispute settlement mechanism on China's textile and clothing subsidy policy, it was considered that China violated the WTO rules to subsidize related industries.

Insiders pointed out that, as China's competitors in the clothing and textile industry, Mexico intends to further enter the US market by suppressing the competitiveness of Chinese products.

Just yesterday morning, the head of the treaty and Law Department of the Ministry of Commerce responded that China has received the request from the Mexican side for consultation and will properly handle it according to the WTO dispute settlement procedure.

Textile enterprises were struck by trade protection

Mexico accuses China of actually subsidizing Chinese clothing and textile companies by exempting income tax, value-added tax and local taxes, and calls for payment by government agencies and preferential treatment in terms of loans, land rights and electricity prices.

Mexico's Ministry of Economic Affairs said Monday that China's domestic textiles and

The subsidy policy violates the WTO rules and has a greater negative impact on Mexico.

According to the procedures, if Mexico and China fail to resolve their differences within 60 days, Mexico may ask WTO to set up an expert group to decide.

It is understood that this is the fourth time that Mexico has complained to WTO about China.

In fact, Mexico is a Chinese competitor in many areas, including clothing and textiles, and has been competing with Chinese enterprises to export products to the US market.

Therefore, some analysts believe that Mexico's move does not exclude the intention to further enter the US market by suppressing the competitiveness of Chinese products.

According to us customs statistics, the share of China's related products in the US market was 37.2% in the first July, up 0.5 percentage points over the same period last year.

The United States was the main export market of Mexico, but by the end of 2010, Mexico slipped from the largest supplier of garment imports to the sixth place in the United States.

There are also internal worries in foreign affairs.

Insiders pointed out that if the Mexico side finally won the lawsuit, the Chinese clothing and textile industry, especially the export enterprises, will face the pressure of further cost increase.

Wang Ding, a member of the personnel department of a clothing trade company in Europe and America, Japan and Southeast Asia, told reporters that his factory belonged to a relatively large enterprise in Dongguan, but orders declined this year.

And labor costs are relatively high, and 3000 yuan a month is hard to recruit people.

Spokesman for China Textile Industry Federation

It is believed that labor costs and capital costs increase year by year, energy prices continue to rise, and pressure on small and medium-sized textile enterprises is increasing.

Wang Qinhua, vice president of China Federation of Commerce, also said that the severe international situation has adverse effects on domestic textile and garment enterprises, especially export oriented enterprises.

Many orders were reduced, and orders for international clothing brands were further pferred to countries with cheaper labour.

With the increase of raw materials such as cotton and labor costs, the profit margins of textile and garment industry as a simple process are squeezed.

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Forced pformation and upgrading of enterprises

Internal and external suffering is not just the textile industry.

Data from the Ministry of Commerce show that the traditional export industries such as luggage, footwear, electromechanical products and other traditional export industries have also slowed down since the second half of the year, especially the mechanical and electrical products.

An electromechanical exhibitor of Guangzhou Trade Fair told reporters that the current growth rate of the export of Electromechanical industry to developing countries is higher than that of developed countries. The export of key products is limited, while most of the electronic products maintain low speed growth, and the export growth rate of machinery products generally slows down.

"On the one hand, the growth rate of export of products is generally slowing down. On the other hand, the industry itself has the situation of low price and disorderly competition, and half of the total cost of export increases."

Related industries pointed out that as the export of traditional dominant industries, although the impact of raw material price changes on cost has weakened, the impact of labor shortage and rising costs is more obvious.

The head of the electrical and mechanical chamber of commerce also stressed that the current trade protectionism of importing countries has been enhanced, and that trade barriers between Europe and the United States from terminal to network manufacturing are also important factors for the unfavorable environment of the foreign trade of mechanical and electrical products.

In this regard, Wang Qinhua said that if the traditional industries do not pform and upgrade as soon as possible, the road of export will be more and more difficult to walk.

At the same time, actively exploring the domestic market is also an important way for the stable development of enterprises.