Textile Industry Should Actively Respond To Trade War

Last year, our country

There are two cases worth paying attention to in foreign trade export. One is the European Union's anti subsidy case for polyester staple in China, and the other is Turkey's anti-dumping case against polyester filament in China.

The two cases eventually won the case when the relevant departments of the state, associations and enterprises involved were in coordination with each other.

In the European Union to our country

In the countervailing case, the European Commission received the European Union's artificial fiber Association's Countervailing claim, calling for a countervailing investigation of polyester staple fibers in China.

If the countervailing investigation ultimately determines the existence of subsidies and industrial damage, the investigation organ may decide to levy a countervailing duty on China's export of EU polyester staple fibres.

In our view, the complainant's intention is to get rid of competitors through WTO's trade relief procedures and then monopolize the market.

To protect the rights and interests of China's polyester staple enterprises in the EU market, under the guidance of the Ministry of Commerce's trade relief Investigation Bureau, the China Textile Import and Export Chamber of Commerce convenes the enterprises involved in the case to coordinate the litigation.

After a year long game, the European Commission finally decided to withdraw its countervailing investigation after listening to the views of all sides and under the great pressure of China and the relevant EU stakeholders to oppose trade restrictions.

In Turkey's anti-dumping case against polyester filament in China, the Ministry of economic affairs of Turkey launched anti-dumping investigations on polyester synthetic filament yarn originating in China, India and Malaysia.

Under the mediation of the professional team of the China Textiles Import and Export Chamber of Commerce, the Turkey investigation authorities announced the final result of polyester filament yarn, and the respondent enterprises in China received a tax rate of US $0.15 per kilogram, with a duty rate of about 10%.

The non respondent enterprises received a tax rate of US $0.17 per kilogram.

According to the final ruling, 13 responding enterprises, including Fujian polyhong Polytechnology Industrial Co., Ltd., all obtained the same tax rate as those of Malaysia and India, which is conducive to the steady export of China's polyester filament enterprises in the Turkey market.

In the two case, the relevant participants said that active prosecution is the key to the success of the case.

The relevant people of the chamber of import and export believe that at present, many enterprises face the investigation first, considering the cost of litigation. Most enterprises eventually give up the lawsuit because of the cost, and then lose the export market in 5 years or even longer.

The chamber of Commerce recommends that enterprises in the face of such trade relief cases should decide whether they should sue in accordance with the importance of the target market. If the country's main business market or the key development market should be actively respondent.

In Turkey's anti-dumping case against polyester filament in China, the respondent enterprises received a tax rate of US $0.15 per kilogram, while the non respondent enterprises may be losing the Turkey market with high tariffs.

Gu Haifeng, an import and export business manager of Jiangsu Huaxi Village Limited by Share Ltd, who is a member of the EU's anti subsidy case for polyester staple, has said that the most difficult part of all work is to actively respond to joint ventures.

It is worthwhile to look at the lawsuit after success, because this is conducive to the overall business development of the EU in the future.

Insiders say that large enterprises dare to respond with their abundant financial resources. Small businesses often choose to give up after assessing risks and responding costs.

Large enterprises can enhance market share after winning the lawsuit, which is also the motive force for large enterprises to sue.

Industry experts said that small businesses should not be afraid to face the trade war and actively seek possible opportunities, such as the possibility of negotiating with large enterprises. On the other hand, they can also "save the country by curves" and cooperate with local traders to avoid losing trade areas as far as possible.

In addition, the newly emerging clothing exporters in Asia are growing rapidly. Bangladesh, India and other countries are importing raw materials from China for the demand for processing export trade, resulting in unease of their existing domestic industries and increasing the possibility of launching trade relief surveys to compete for the destination market in China.

Textile and garment industry should pay more attention to this trend and guard against it.

In addition, the China Textile Import and Export Chamber reminds enterprises in the industry that under the condition that the low end products of China are weakening, the relevant enterprises can give up the strategy of low price competition through the optimization and upgrading of products, and increase product development so as to enhance the competitiveness of products.