Cost Saving Asian Textile Manufacturers Build Factories In The US

Foreign media said that as China's wages and energy prices rose, in order to save costs, more and more Asia Spin Zhu Shanqing is one of the manufacturers in the southeast of the United States.

According to a report in the United States, Zhu Shanqing owns a spinning mill in Hangzhou, Zhejiang, China, because of difficulties in increasing labor, energy and land prices in China. He is shipping some spindles to the state of South Carolina. His company, Cole group, has agreed to invest $218 million to build a plant in Lancaster County. Mr. Zhu said that the electricity charges in new factories built in the United States are only half of that in China and can be strongly supported by the US local government. Kohls Corp is expected to create at least 500 jobs.

There is another advantage. As China's costs continue to increase, Kohls Corp can deliver yarn to Central American manufacturers, unlike Chinese companies, which deliver duty-free clothing to the United States.

It is reported that Mr. Zhu's actions will not restore the flourishing Southern textile industry. But this shows how changes in Global trade are creating advantages for the manufacturing sector in the United States.

Robert Hitt, Minister of Commerce in South Carolina, said: "we are at the forefront of a mature cycle. The rising cost is pushing Asian enterprises to move to the United States.

In September, China's JN Fiber Company agreed to spend $45 million to build a factory in South Carolina, processing plastic bottles into polyester fibers filled with pillows and furniture. The investment is expected to create 318 jobs. Economic development officials in South Carolina and Georgia say that the number of Asian textile manufacturers approached this year has increased.

In 2012, Brian Hamilton, a doctoral student at the textile School of North Carolina State University, wrote a doctoral dissertation on the topic of global textile industry. He said that rising costs have made spinning in China more expensive than in the US.

He found that in 2003, spinning in the United States cost 2.86 US dollars per kilogram and 2.76 US dollars in China. By 2010, it would cost US $3.45 in the US, and it has jumped to $4.13 in China.

It is reported that the United States imports yarn and clothing Tariffs have been imposed for decades. But the North American Free Trade Agreement and other trade agreements created a tax exempt zone between the United States and several trading partners. The agreement stipulates that textiles imported from partner countries must be made entirely in these countries or materials made in the United States, otherwise the textiles will be subject to tariffs, generally 5% to 6% for fabrics, 10% to 12% for fabrics and 15% to 20% for garments.

For many years, Asia Clothing production Businessmen have been bearing this tariff because production and transportation costs are very low. Now, they are reassessing the practice.