Sino US Textile Dispute Began To Be Announced 60 Days After Consultations Between Governments

The trade dispute between China and the United States, which lasted for 10 years, has been rising again this week, P.

On the eastern time of the United States, in November 17th, the Executive Committee of the US Department of Commerce, a href= "http://www.91se91.com/" target= "_blank" > textile > /a, decided to make a request for consultations on three kinds of textiles, knitted fabrics, corsets and robes imported from China.

This actually means that 23 months after China's accession to the world trade organization, the US textile export is again subject to quota restrictions.

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< p > < strong > MOFCOM: the US decided to violate WTO principles < /strong > /p >

< p > the Ministry of Commerce has confirmed to reporters that China's purchase plan for the US has been postponed. According to the original plan, second trade delegations to Meida should have started on Wednesday.

According to media reports, China will increase tariffs on some imported products in the United States. The Ministry of Commerce said that this is mainly a response to the 201 steel case in the United States, which is not directly related to the textile restriction.

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< p > in addition, Ma Xiuhong, Vice Minister of Commerce, has already met with the US ambassador to China Reid, negotiating the request of the US government for the three kinds of textiles in China, and stated that the Chinese government expressed great regret and resolute opposition to the US decision to re regulate the three textiles in China.

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"P," a spokesman for the Ministry of Commerce said: "the United States government has decided to oppose the WTO's free trade pparency and non discrimination principle despite strong opposition from China.

As a member of the WTO, China will retain the right to resort to WTO related institutions to safeguard the rights and interests of its own industries. "

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Before P, Zhou Wenzhong, Vice Minister of foreign affairs, also met with the US ambassador to China in 19 PM. The Chinese government was shocked and dissatisfied with the decision of the US side against China's resolute opposition, and hoped that the US government could change its erroneous decision from the overall situation of Sino US relations. "Reid"

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< p > in the China Textile Import and Export Chamber of Commerce, the reporter understands that according to the protocol of China's accession to the WTO, the United States will enter the consultations agenda between the two countries after the announcement of the "consultation" decision, that is to say, 60 days after the announcement, the special safeguard will really start.

Over the past 60 days, the two sides will have consultations on some details and technical issues, such as whether the United States exercises independent control or restrictions on Chinese textiles; the ratio of control is annual growth rate of 7.5% or reasonable floatation; the starting time of special insurance is calculated on the time of Chinese commodity declaration or on the time of arrival.

This round of negotiations relies mainly on government and legal experts.

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< p > if China and the United States fail to reach a satisfactory solution to both sides, the annual growth rate of the above three kinds of textiles exported to the United States will not exceed 7.5%.

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< p > < strong > why does the United States restrict the import of Chinese textiles? < /strong > < /p >

< p > textile < a href= "http://www.91se91.com/" target= "_blank" > dress < /a > industry as labor-intensive industry, is not only China's traditional industry, but also one of the industries with strong international competitiveness in China.

In the United States, influenced by the industrial structure adjustment, it has become a sunset industry. Unemployment is particularly prominent in the textile industry.

According to statistics from the US labor department, in July this year, the average textile and garment industry lost 587 people a day, and the number of unemployed people reached 18 thousand and 200 in a single month.

Compared with the same period last year, the number of employment decreased by 60400.

It is under such a big industry background that the Sino US textile trade dispute has been calming for more than two years.

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< p > actually, it is not only textiles. Since the beginning of this year, the United States has put forward trade restrictions on many kinds of commodities in China, such as the anti-dumping of color TV, and the intellectual property investigation of batteries.

Almost with the request for restrictions on textiles, in July this year, the legitimate trade association of American furniture manufacturers, made up of 14 furniture manufacturers in the United States, also submitted an anti-dumping application to the US government, claiming that Chinese products had seriously damaged the furniture industry in the United States.

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"P", the United States this time the import of China's textiles import measures, the most important reason is that, according to the WTO agreement, after the cancellation of textile import quotas in January last year, the domestic textile and clothing industry suffered a serious blow from Chinese products.

In July, a report by the American Textile Manufacturers Association said exports of textiles to the United States in four areas increased by 920% in the past 17 months, and the share of the US market rose from 5% to 32%.

In fact, there are many different voices in American Society for these statements and practices.

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< p > < strong > restricting the import of Chinese textiles leads to a big drop in the US stock market < /strong > < /p >

< p > the US government's restrictions on the import of Chinese textiles have been opposed by many people in the economic circles.

As soon as the news was announced, the US stock market fell, and before the press release, the main US stock index went green. The Dow Jones Industrial Average fell 71.04 points, fell 0.73%, NASDAQ fell 17.73 points, and fell 0.93%. Meanwhile, the US dollar exchange rate also dropped to a 6 year low on the 19 day.

Why did the US market react so violently? < /p >

< p > Qian Jun said: "I interviewed HSBC foreign exchange expert Li Teng in New York branch, he told me that when the news came out, all foreign exchange traders thought that the United States hoped to reduce the trade deficit, rather than hope that the US dollar would depreciate.

Traders are selling the US dollar along the way the US government thinks, resulting in a decline in the US dollar, which is objectively able to reduce the US trade deficit.

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According to Chinese statistics, by the end of 2002, the trade gap between China and the United States amounted to US $150 billion. China replaced Japan as the largest trade deficit country in the United States. P

Some manufacturers in the United States complain that the reduction in US exports and the increase in the deficit have led to massive layoffs in US factories.

Especially in the textile industry, the unemployment problem is particularly prominent.

According to statistics from the US labor department, 18 thousand and 200 people lost their jobs in the first half of this year.

In approaching the bipartisan election, this voice has increased the political pressure on the Bush administration to reverse the trade deficit.

But from this restricted product, the trade volume of knitted fabrics and brassiere is only about 500 million dollars, accounting for 0.33% of the total trade deficit. Therefore, the US industry believes that the political symbolism of this move far exceeds its economic role.

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< p > although this restriction may give some encouraging news to the manufacturing industry which has been depressed in the United States, for the whole business enterprise in the United States, this time the United States reintroduced textile quotas, which made many enterprises face uncertain risks.

In the context of modern international trade, if you have me, you will have a series of reactions.

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< p > the voice of opposing trade protectionism comes not only from China but also from the United States. In November 10th, the WTO finally ruled that the 201 steel safeguards implemented by the United States last year violated the rules of WTO.

The EU's subsequent statement said that the US approach had led to a 30% decline in their steel exports to the US.

Then, how much will the US restrict the export of three kinds of textiles in China? How much impact will it bring to domestic related enterprises? Will the Sino US trade dispute revive? "/p

< p > < strong > how does textile export restriction affect Chinese enterprises < /strong > /p >

< p > the decision of the United States to impose quotas on the three kinds of textiles exported to China is undoubtedly a huge obstacle to many textile exporting enterprises in China. Under such circumstances, these enterprises have also responded quickly and adjusted their business strategies so as to minimize possible losses.

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When p came to Beijing textile import and export company, a staff member was cleaning up the latest < a href= "http://www.91se91.com/" target= "_blank" > cloth < /a >. The reporter found that there was no sample of knitted fabric on the display rack.

Zhang Jun, manager of the comprehensive management department of the company, told reporters that after China joined the world trade organization, they began to export knitted goods such as bra, knitted fabric and robe to the United States. From August 2002 to October 2003, the export volume of these three products had reached US $500 thousand. However, the unilateral announcement by the us that the quota of these products will be restored will also cause the company's original plan to be in a predicament.

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Zhang Jun, manager of the comprehensive management department of Beijing textile import and Export Corporation, said: "we expect that these three commodities will reach US $800 thousand (US $800 thousand) this year, and we have finished 500 thousand (US dollars) now. Then 300 thousand (US dollars) may not be fulfilled.

If the United States unilaterally re imposed restrictions, it is almost impossible to export to the United States.

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< p > Feng Guixiang, general manager of Beijing copper cattle import and export company, said: "there are many influences. What are we going to do if we are doing a lot of work now?" if the quota is reset again, what should we do about the quota? What can we do if we can't go out? What should we do after the fixed order is reset? What solution is there after that? "

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< p > Beijing coast line < a href= "http://www.91se91.com/" target= "_blank" > dress < /a > General Manager Zhang Nan said: "for me, one hundred percent is knitwear, this year's order is full, but next year's order has not yet been obtained."

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< p > reporter asked, "is it possible to get orders next year?" < /p >

< p > Zhang Nan said, "it is possible that this is possible."

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< p > < strong > domestic enterprises are actively looking for other buyers < /strong > < /p >.

< p > in the interview, reporters also learned that under the restriction of US import quota measures, in order to minimize the losses caused by the backlog of export products, the production and distribution enterprises of these three kinds of textiles are now negotiating with other countries outside the United States to find other buyers for these products originally sold to the United States.

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< p > Zhang Nan said: "only more orders from other countries, such as Australia and New Zealand, do not hang on this tree."

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Zhang Jun, manager of the comprehensive management department of Beijing textile import and Export Corporation, said: "the contract signed at present must be implemented and exported to other countries and re exported to the non quota area". P

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Manager Zhang Jun also admitted to reporters that the pformation of sales direction would bring great losses to enterprises. He gave reporters such an account: taking a $100 thousand gown trade as an example, the profit margin to the United States was 10%, the profit was $10 thousand, and the profit margin to Canada and Australia was 3%, and the profit was only $3000, except for freight, insurance and other expenses, and the company could lose money. P

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< p > Zhang Jun thinks: "(profit rate) reaches 5%, which is sure to be profitable, and it is hard to tell if the profit margin is below 5%, because it has many costs."

In other words, if we export to a third country, losses will be unavoidable.

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< p > < strong > viewpoint < /strong > /p >

< p > textiles related to the employment of 10 million persons < /p >

Last year, China exported nearly US $9 billion to us textiles and clothing, of which US $422 million was exported for knitted fabrics, corsets and gowns.

Although the three products account for only 1.5% of the total textile exports, both the mainland and Hongkong businesses are worried that Sino US trade disputes will escalate if disputes are not resolved.

We also interviewed Professor Zhang Hanlin, Dean of China WTO Research Institute of foreign economic and trade university.

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Reporter P: the trade dispute between China and the United States has been continuous. Why did the United States swing its trade protection to China unilaterally this time? < /p >

< p > Zhang Hanlin: I think it should be said that the trade policy of the United States has always been the two stick of trade liberalization and trade protection at the same time.

All industries and products that are advantageous to the United States can implement zero tariff, such as IT products.

But for some of the declining industries in the US, it must also be protected.

For example, metallurgy, such as the textile industry and clothing that we are talking about now, the labor-intensive and declining sunset industry, its trade protection level should always be relatively high.

Generally speaking, in the presidential election year, the general keynote of the US trade policy will change, and it will inevitably start trade protection for many industries that it considers itself under the pressure of foreign competition.

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< p > reporter: so when the quota restriction is put into effect, what is your greatest concern as an expert on international trade? < /p >

< p > Zhang Hanlin: it should be said that we are now more concerned about the enterprises that produce these three products.

If the main export market is the United States, then the production and operation of these enterprises will be negatively affected, which will affect the employment of these products manufacturing enterprises.

There are quite a lot of enterprises in the textile and garment industry, and the quantity is relatively wide. At the same time, the distribution is quite wide. It involves thousands of households and its employment has reached about 10000000.

This can be said to be a very important employment pressure after China's accession to the WTO.

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< p > reporter: will there be an effect of the current quota? Today it may be a robe and a corset. So tomorrow is probably toys and clothing? < /p >

< p > Zhang Hanlin: you are quite right.

Therefore, we are now worried that if it sets quotas on textiles and clothing now, it is likely that other so-called protective measures may also be adopted for toys and other light textile products, or for plastic products.

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< p > reporter: so in fact, this matter will have some adverse effects on the United States itself. < /p >

< p > Zhang Hanlin: there is no doubt that there are two sides.

First, there is no fundamental change in its domestic employment. Even if it does not import from China, it will import from other countries. There is a domestic demand for it, and domestic producers can not fully meet it; second of the United States, more than 80% of employment is already in the service sector, which means that increasing employment is also in the service sector. On the contrary, because it does not import from China, it reduces its employment opportunities for importing distributors and retailers.

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< p > < strong > voice < /strong > /p >

< p > this news makes people worry that the United States will implement other trade protection measures before next year's general election.

Laura Jones, the head of the American textile and clothing Importers Association, said: "the United States will not resume any employment opportunities because of this measure.

Quotas on China will only pfer trade to other countries. "

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< p > the Bush administration's restrictions on trade will undermine investor confidence.

Retail organizations immediately condemned the government's decision to restrict the importation of Chinese textiles, saying it would create a vicious circle of new trade protectionism, leading to price increases from bedroom furniture to televisions.

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Julia Hughes, who lobbied for the American Apparel Importers Association, said the Bush administration's decision was made out of political considerations, not based on facts. P

"We have noticed that many factories have closed down, but the reasons for the collapse may not be relevant to China," she said in a request for consultations submitted by the textile industry.

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The export growth of China's textile products to the United States is the result of the continuous improvement of the quality of Chinese products. It is the result of the independent choice of the importers, retailers and consumers of the United States. It is a concrete manifestation of the competitiveness of China's textile and garment industry, and has no direct causal relationship with the decline of the related industries in the United States. P

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The development of trade between < p > a href= "http://www.91se91.com/news/index_s.asp" > textile > /a > is not only beneficial to China, but also a realistic choice for China and the United States to win a win-win situation.

In dealing with trade frictions, both sides should be calm headed, cooperate and develop rather than confrontation.

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