Textile Enterprises Should Be Vigilant Against The Trade Protectionism Of "Buying Domestic Products"

In February 13, 2009, the house of representatives of the United States Congress agreed on a series of economic stimulus plans such as the purchase of domestic goods, requiring that all the engineering and construction steel involved in the scheme must be produced in the United States, and any uniform and textile used by the US pportation safety administration must be truly "made in the United States".

This means that China will become one of the biggest victims.

At first glance, the greater impact on the terms should be the purchase of bulk commodities by the state, and the traditional commodities like clothing and footwear belong to the mass consumer products. The price is still very attractive and the impact should be relatively small.

However, this is not necessarily the case.

With the end of 2008, the quota set by some countries against China's textile and clothing exports has also ended. Our Ministry of Commerce has no longer implemented the export volume of textiles exported to the United States and the management of license management and export textile export licenses since January 1, 2009.

The direct impact is the surge in the number of formerly restricted textile and apparel products entering Europe and the United States.

According to the preliminary statistics of the textile and clothing office of the US Department of Commerce, in January, the United States imported 222 categories of knitted fabrics from China, 28 million 430 thousand square meters, an increase of 118.7% over the same period last year, and imported 632 kinds of chemical fiber socks 27 million 340 thousand square meters, an increase of 118% over the same period last year. The 645 categories of men's jersey imported 175 thousand square meters, the growth rate was more than 213.4%. In addition, many products exported to the United States increased by more than 50%.

Experts said that the abolition of quota restrictions is an opportunity and challenge for textile export enterprises. It does not mean that textile trade will be completely liberalized. Various trade protection measures and barriers will continue to emerge. The growth rate of textile and garment products exportation will directly lead to the use of WTO clauses in the United States for trade protection.

In addition, some experts also pointed out that if China's industry exports to the United States, the greater the proportion of imports to the United States, or the greater the proportion, the greater the possibility that the industry will encounter US trade barriers.

According to this idea, besides steel, furniture and other industries may be the first to withstand the impact of trade protectionism in the United States, clothing, footwear, textiles and rubber products are also facing greater risks.

In 2008, China's textile and apparel exports to the United States amounted to 25 billion 360 million US dollars, an increase of 1.8%, accounting for more than 30% of the total imports of the United States.

Secondly, if an industry (or product) exports to the United States account for the greater proportion of China's domestic industry exports, the greater the possibility that China's related industries will be greatly reduced by external demand constraints.

In 2008, China's exports to the United States accounted for 27.9% of the proportion of clothing and footwear industry, second only to furniture, wood products and rubber products, and the external demand was also very restrictive.

Ningbo's textile and garment export enterprises are numerous, and the degree of dependence on foreign demand is high. Any foreign restrictive trade measures will have a major impact on Ningbo's textile and garment exports.

The United States is Ningbo's second largest export market after the European Union.

According to statistics, in 2008, Ningbo exported 14.6% textile and apparel products to the United States, including textiles, yarns, fabrics and products, clothing and accessories, an increase of 14.6%, accounting for 8% of the total exports of similar products.

Therefore, Ningbo textile and garment export enterprises should be more vigilant against the protectionism under the terms of "buying domestic products". In the meantime, when our government continuously strives for a favorable trade environment, enterprises themselves should also actively change their concepts, adapt to the new situation as soon as possible, arrange the export plan in an orderly way in 2009, strive to improve the quality and added value of products, and promote the healthy and orderly development of the whole industry.

Wang Xiaonan: editor in charge