The United States Dropped " Nuclear ":5000 Billion Hit China; Thousands Of Products Were Taxed On Textile And Clothing, And Textile Export Enterprises Tried Their Best.

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The global trade war has been burning to the textile and garment industry.

Recently, the US government has caused a sensation by adding 10% tariffs to 200 billion dollar products including textiles, clothing, seafood, vegetables and so on. In July 20th, US President Trump said in an interview with CNBC that he was ready to levy taxes on 500 billion US dollars of imported Chinese goods.

It is understood that thousands of textile and apparel products have been included in the list of taxes. The Federation of Chinese textile industry said this is the biggest challenge China's textile industry has encountered since the abolition of textile and clothing quotas in the United States and Europe.

Textile and clothing is one of the important categories of China's exports. As we all know, the rising cost has already imposed heavy chains on labor-intensive industries such as textile and clothing. What kind of severe situation will China's textile and apparel face under the influence of Sino US trade war?

The Sino US trade war is escalated, and textile and garment export enterprises are besieged everywhere.

Hugo net understands that the new round of Sino US trade tariff measures will not take effect immediately. According to the statement issued by the office of the United States trade representative, the added tariffs may come into force after the public consultation ends in August 30th. According to the US OTEXA statistics, the total export of Chinese textile garments to the United States in 2017 amounted to US $38 billion 740 million, of which, export clothing was US $27 billion 30 million, and exports of textiles and finished products amounted to US $11 billion 710 million. Once the policy comes into force, it will definitely have a great impact on Chinese textile and garment export sellers.

Zhu Yong, manager of Suzhou dice apparel Co., Ltd. said: "with the continuous fermentation and upgrading of Sino US trade war, textile and garment exports have brought tremendous pressure. In fact, since last year, foreign relief measures and trade barriers against China's textile and garment trade have been increasing day by day, and the external situation of textile and garment trade is becoming more and more serious. According to customs statistics, as of October 2017, the world launched 11 trade relief surveys on China's textile and clothing industry, the number of cases increased by 37% over the same period, and the amount involved reached 490 million dollars, an increase of 53% over the same period last year.

Wang Pan Ke, director of the electricity supplier division of Hangzhou Minnie Garments Co., Ltd. also said: "now the Sino US trade war tax list starts to relate to the textile and clothing related to the people's livelihood, and the Chinese textile and garment industry is heavily dependent on exports. This tax increase will slump the export of China's textile and garment industry to the United States." In addition, he stressed that in the first half of 2018, the RMB exchange rate first increased and then depreciated, and the significant increase in two-way volatility also had a great impact on Chinese garment export enterprises. "On the one hand, the appreciation in the early stage led to the purchasing of foreign trade buyers, and the procurement of factory products was difficult to control. On the other hand, the renminbi depreciated at this stage, although buyers were not too sensitive to the price of the supply products, and the rate of return was faster than before. However, the labels for the labels of clothing products (clothing labels) were also more stringent. At the same time, the large fluctuation of the exchange rate caused the exchange losses to the garment export enterprises and increased the financial costs."

Zhao Jialei, the clothing manager of Xi Xiu, Hangzhou, also pointed out that the rising labor costs and the shortage of labor have caused a great impact on Chinese clothing export enterprises. According to its introduction, in recent years, the monthly minimum wage standard in China has increased by more than 15%, and the labor cost has increased by nearly 3 times compared to the past 10 years. At present, the cost of labor in the textile industry in the coastal areas has exceeded 4000 yuan per month, which is 3-6 times that of countries such as Vietnam, Bangladesh and Burma. In addition, the rising cost of factory rental, he admitted: "Chinese clothing export enterprises have been struggling in recent years, only changing the way of" cross roads ", such as the supply chain mode of cross-border electricity suppliers, will become wider and wider in the future.

Export textile and clothing are all in all directions? Two key elements of creating apparel supply chain operation are the key.

At present, with the rapid development of cross-border e-commerce platforms such as Amazon, traditional retail is facing great challenges, coupled with the rapid rise of fast fashion brands, consumers' preference for buying behavior is changing rapidly, orders are personalized, customized and fragmented. Zhao Jialei said: "in the medium to long term, the middle and high-end orders and fashion orders that require complex work and quick response will remain in China."

No doubt, the fashion trend of textile and garment industry is getting faster and faster. Small batch, multi variety, frequent product changing season and shorter sales cycle make it necessary for the production and circulation of textile clothing to complete the corresponding orders in a relatively short time. In addition, the sales of cross-border e-commerce channels, especially PrimeDay, black Friday, Internet Monday and other high season, is a severe challenge to the apparel supply chain.

With the escalating trade friction between China and the United States, some textile and clothing products have been affected by the war of trade war, and with the fluctuation of exchange rate in the new era, it will also become normal, which will challenge the cost accounting and profit realization of export orders. But even so, there are still many export textile and garment suppliers and cross-border electricity supplier sellers believe that there are many opportunities for this category. Among them, Zhu Yong set up a garment supply chain operation and made his own business experience. He revealed that the two elements are crucial for the steady development of textile and garment export enterprises.

On the one hand, dress design should be diversified as far as possible. Product design is the most important part of the textile and apparel supply chain, and the core of the design is the assurance of the product. The design is not only a simple drawing, but also a variety of factors such as dress modeling, style, material application, process treatment and so on. It is worth mentioning that it should also be closely related to the popularity of overseas markets. Once a holiday celebration comes, it will be understandable to sell products with popular themes.

On the other hand, clothing should be closely related to the trend of overseas trends. Because of the larger size and the seasonal influence of clothing, enterprises should have relevant staff to play a role in discerning market intelligence. According to him, "designers finish a quarter of products, tend to be less concerned about the actual sales trend, this is precisely the critical period that they need to rack their brains to think about costume design. If we can have corresponding support from the relevant departments of market dynamics, we will be able to provide more help in order to catch up with the fashion trend quickly in the season, and make a new way to make up the money."

There is no doubt that the export of Chinese garment enterprises will face great challenges under the Sino US trade war. Eggs should not be put in the same basket. As everyone knows, factories and enterprises in addition to the above suggestions, opening up new markets, spanformation of cross-border electricity providers will be a new attempt.

The day before yesterday, it was also predicted that the next US tax target would spread to the textile and garment industry. As a result, Trump's stick swung around yesterday. In July 10th, the US Trade Representative (USTR) issued a statement that, based on China's retaliation against the United States, and refused to change its behavior, policies and practices, USTR developed a 10% ad valorem tax on China's more than 6000 tariff items and $200 billion worth of goods exported to the United States, together with a list of recommended commodities for tax purposes, including yarn, wool, rainwear, jackets, coats and so on.

Nearly 1000 textile and apparel products rank the list of taxes.

According to the preliminary arrangement of the China Federation of textile industry, about 927 textile products (about US $4 billion in exports to the US) were included. This is the biggest challenge facing China's textile industry since the abolition of textile and clothing quotas in the United States and Europe.

1, the United States on the $200 billion list tariff steps

The new round of tariff measures will not come into force immediately. The US side said that the review process on tariffs imposed on China is expected to last for about two months. The first is the public appraisal stage. Stakeholders can submit comments to the office of the United States trade representative. After that, the US authorities will hold a hearing in from August 20th to 23rd and take further decisions after the end of the public comment period in August 30th.

2. The volume of export trade related to this tax.

According to the US OTEXA data, the total export volume of Chinese textiles and clothing to the US in 2017 amounted to 38 billion 740 million US dollars. Among them, export garments are 27 billion 30 million dollars, and export textiles and finished products are 11 billion 710 million US dollars (including yarn 220 million US dollars, fabrics 1 billion 840 million US dollars, household textiles, industrial textiles and other manufactured products 9 billion 640 million US dollars).

According to the preliminary arrangement of the International Trade Office of the China Textile Corporation, the product with 10% tariffs is more than 900 tax codes according to the US standard, covering a very wide range, involving almost all products of the HS50-60 chapter. Include all kinds of raw material (cotton, wool, silk, hemp and Chemistry) fibre All exports of yarn, fabrics / fabrics, industrial textiles and some textile machinery products account for about 4 billion US dollars in annual exports to the United States.

In accordance with the ITC caliber, we have compiled the HS50-60 chapter on tax increase for US exports in 2017 as follows:

3. The list excludes clothing products and most household textiles.

It is worth emphasizing that the United States this time focused on the upstream and downstream parts of China's textile industry chain, and did not take any tariff measures on clothing products and most household textiles directly for American consumers.

We will pay close attention to and follow up the further initiatives of the US government, and maintain close ties with relevant industry organizations and consumer interests representatives of the United States, and take various measures to jointly maintain mature, efficient and mutually beneficial Sino US textiles. clothing The smooth operation of the supply chain.