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    What Is The Impact Of Trade War On China's Textile And Clothing Exports?

    2018/3/27 9:49:00 100

    TextilesClothingTrade

    World clothing shoes and hats Beijing 12:30 on March 23rd at 12:30 a.m., President Trump signed the presidential memorandum, according to the "301" survey results, will import tariffs on goods from China, and impose restrictions on Chinese enterprises to invest in the United States.

    According to the memorandum signed on that day, the office of the United States trade representative will formulate a specific plan for levying tariffs on Chinese goods within 15 days. In addition, the US Treasury will introduce a plan within 60 days to restrict Chinese enterprises from investing in mergers and acquisitions in the US. Trump said that the scale of Chinese goods involving taxation amounted to US $60 billion.

    China's Ministry of Commerce today released a list of the suspension products for the 232 measure of steel and aluminum products in the United States, and intends to impose tariffs on some products imported from the United States.

    Foreign Ministry spokesman Hua Chunying expressed the hope that the US side will take seriously the Chinese side's position and make rational and prudent decisions.

       Will China's textile industry be affected?

       How should textile and garment export enterprises respond?

    It is not known whether the $60 billion commodity contains textiles and clothing. However, because China is the largest exporter of textiles and clothing in the world, and the United States is also the largest export market for Chinese textiles and clothing, many American people are not optimistic about the fact that the United States imports more textile and clothing from China than the total 1/3 of the country's textile and clothing imports.

       What do industry experts say?

    At the industry forum held in March, Sun Ruizhe, chairman of the China Textile Industry Federation, put forward suggestions to pay attention to the unfavorable factors of the Sino US trade friction when he talked about the hot issues of the ten industries. He said that at present, the Trump administration is more sensitive to the trade surplus with a more firm trade protectionist stance. Once on the stage, it threatened to impose a 45% special tariff on imports from China, and launched the "double counter" investigation and the "301" investigation. In view of this, textile and clothing as China's superior export products to the United States, with an annual surplus of over $30 billion, is vulnerable to the impact of the Trump administration's trade protection measures. It should be closely watched and avoided as much as possible to become a sacrificial industry in the Sino US trade game.

    Sun Huaibin, vice president of the China Textile Industry Federation, said in an interview with "China textile daily" that Trump's move was shocking. At the same time, he also pursued a counter globalization thinking and policy after he came to power, and an inevitable reaction to China's growing international competitiveness.

    According to Sun Huaibin analysis, Trump announced a tariff of $60 billion on China's goods, and in some industries limited capital, involving a larger scale. Although the list of goods involved has not yet been announced, China's textile and clothing are large exporters to the United States. If the United States limits its interests in protecting the interests of the US manufacturing industry and increasing domestic employment, it will not exclude the possibility of being included in the list of commodities. At present, many textile and garment enterprises in China are going out. Once the relevant restrictions policy falls to the ground, they will have an impact on the normal investment and mergers and acquisitions of these enterprises, resulting in losses.

    Sun Huaibin said that for the trade restrictions that the United States may implement, the industry and enterprises should pay close attention to it on the one hand and calm down on the other. First, there is no need to panic. At present, the Chinese government has a clear stand and resolutely urges the US side to resolve differences between the two sides through dialogue and consultation, so as to avoid damaging the overall situation of Sino US cooperation. Trump's move also seriously damaged the interests of the domestic people and importers in the United States, and the internal opposition was louder. Industry and enterprises should be calm and confident. Two, we should pay attention to the necessary precautions against risks. We must operate prudently when placing orders and trade cooperation, and pay attention to controlling risks. The three is to increase domestic market development. The potential of the domestic market is huge, and people's pursuit of a better life and consumption upgrading is the motive force of industrial development. Enterprises should invest more in meeting domestic demand.

    Sun Huaibin said that China's textile industry has experienced many years in the ups and downs, and believes that the industry has the strength and confidence to overcome difficulties and sustain development.

    Liu Yaozhong, director of the International Trade Office of China Federation of textile industry, believes that from now on, textile The clothing industry is not Trump's China. Trade The main focus of the war. The 301 clause is mainly aimed at infringement of intellectual property rights. The focus of disputes between the two sides is high-tech and information technology products. At present, trade in textiles and clothing has not been directly affected. However, in order to avoid uncertain trade risks, american apparel brands and buyers will place more orders in Southeast Asian countries, which will further enhance the share of Southeast Asian countries in the US textile and garment market.

       Export textile enterprises how to say?

    Jiangsu Guotai International Group Guohua import and Export Co., Ltd. in 2017 and January 2018, I made textiles to the United States. clothing The export rankings rank among the top 20, and the relevant business managers said that Thailand China mainly focused on clothing export business in the country, locating in the middle end market, paying close attention to the US's desire to levy tariffs, and eagerly hoped that the government or industry organizations could actively plan for the relevant export enterprises to help Chinese enterprises effectively cope with and prevent and control risks.

    The Ningbo high import and Export Co., Ltd. has a considerable part of its clothing exports against the US market. Its head said that the trade war Trump lit will reduce the order of Chinese customers in the short term. Whether the clothes are added to the tax list remains to be seen and is closely watched. He believes that the US market is already a fully competitive market, and it is difficult for retailers to transfer prices to consumers because of the increase in procurement costs. If taxes on Chinese clothing are increased, large quantities of orders will be transferred to factories in Southeast Asia. A small quantity of orders that can not be transferred for the time being, customers will take a wait-and-see attitude, because most of the small number of orders, customers do is FOB clause. FOB the risk is transferred from the seller to the buyer when the cargo is loaded on the designated cargo ship. He judged that there were some styles that could only be made in China. After a period of time, customers could not find alternative suppliers and would move back to China's production. This cycle would take more than half a year.

    In the interview with our reporter, a senior foreign trade personage of Shanghai textile said that the United States has always been a trade protectionist, and the performance of the Trump administration is even more prominent. Trade conflicts between China and the United States have not been interrupted for many years, and the industry has become accustomed to it. Nowadays, with the improvement of the overall level of the industry, the comprehensive resilience has increased a lot. Many enterprises have transferred the supply chain to Southeast Asia and Africa. Through these areas, entrepot trade has largely avoided such trade risks.

    Speaking of how to guard against trade risks, the person in charge thinks that for the industry, the beginning of the real labor pains is actually when the US brewing TPP, many brands' orders have begun to transfer, and once orders are transferred, it is hard to come back again. But this objectively forces China's industry to accelerate transformation and upgrading. This is a "double-edged sword", because cost pressures force the industry to go outside. "Now we have established our own textile base in Ethiopia, which is also a strategic move for Shanghai's textile industry. By making full use of the local demographic dividend and land resources, we can achieve stable export to the US trade. To resolve trade risks, we must enhance the ability of industry to resist risks through developing new regional markets and cross-border development.

    According to the head of Beijing textile technology company, it is not good for Chinese and American textile practitioners to involve tariffs on clothing products. Even if it does not involve, if the Sino US trade war causes RMB appreciation, it will be very unfavorable for the export textile enterprises. More wonderful information about the world clothing shoes and hats net!


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