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    The 200 Billion Dollar Product Tax Hearing Ended On The 27 Th. What Was The Voice Of Chinese And American Textile Producers?

    2018/8/29 11:18:00 132

    HearingSino USTextile Industry

    The United States trade representative's public hearing on the $200 billion product tax is scheduled to end on August 27th.

    Representatives from more than 350 industry associations and enterprises from decoration, clothing, food processing, semiconductor, medicine and so on were voiced at the meeting.

    What is the fact that Chinese and American textile producers have stated? What is their opinion?

    Chinese voice speaks frankly

    "China's textile and clothing products are irreplaceable to the United States"

    There are many Chinese private enterprises, trade associations and even Chinese universities in the list of 12 page hearings.

    In August 23rd,

    China Textile Import and Export Chamber of Commerce

    Vice President Wang Yu led a delegation to Washington to attend the hearing.

    In his speech, he stressed that China's textile and clothing products are right.

    American market

    It is irreplaceable.

    If tariffs are added, American importers will spend several years looking for new suppliers. American retailers and distributors will face shortages of goods, competitive advantages and profits.

    Tax measures will also lead to supply chain adjustment, trade chain disruption and other issues, which affect bilateral and multilateral trade cooperation.

    At the same time, the cost pressure caused by taxation measures will eventually be pferred to hundreds of millions of American consumers, and at the same time, it will have a negative impact on the employment of enterprises.

    Wang Yu stressed that the United States 301 investigation tax measures can not solve any problem of the 301 investigation report, nor solve the trade balance problem which the United States is concerned about, but it will only harm innocent businesses and consumers in China and the United States.

    Textile chamber of Commerce

    It is hoped that the US government will listen to the voices of all parties and carefully consider tax measures.

    In the Q & a session, Wang Yu answered the question of intellectual property protection of textile and clothing products in China.

    Before and after the hearing, Wang Yu met with the United States respectively.

    fashion

    Ms. Julia Hughes (Julia Hughs), President of USFIA, and Stephen Ramer, executive vice president of AAFA, the United States clothing footwear association (AAFA), have candid communication on related issues.

    Two representatives of the Association issued comments on objection to taxation at the hearing.

    During his stay in the US, Wang Yu also met with lawyers from the United States in New York to discuss the issue of product exclusions and lobbying for textile and garment enterprises in the current round of taxation measures.

    All sides agreed that the 301 investigation would be closely communicated and ready to respond to the plan.

    Zhang Jun, a senior partner in Beijing's Ying Ke law firm who was also attending the hearing in the United States, told a Chinese media reporter that although the presidium had obvious guidance in the interactive session, many American business representatives clearly recognized the irreplaceable nature of the Chinese market and the irreplaceable supply chain.

    "For the US representatives who oppose tariff increases, the presidium will ask whether there are products imported from other countries to import from China. Why can't you pfer the dependence on China's supply chain?" the presiding intention of the bureau is very obvious.

    The three major textile and apparel associations of the United States have different positions.

    The three most influential textiles in the United States

    Garment industry

    The organization took part in the hearing.

    Among them, the United States clothing footwear association (AAFA) and the American fashion industry association (USFIA) hold an opposing position; the national textile organization Federation (NCTO), as an interest representative of some textile production enterprises and related enterprises in the United States, insists on increasing tariffs on Chinese clothing, household textiles and other end textile products, as well as advanced technology textiles.

    As for the textile machinery industry, up to now, the testimony of the three parties is beneficial.

    The Secretariat of China textile international production capacity cooperation alliance has arranged their relevant positions.

     

    1. against the Levy of tariffs: the American Apparel Footwear Association (AAFA):

    U.S.A

    Footwear

    As a national trade organization, AAFA is a well-known brand and trader of more than 1000 clothing and footwear industries and tourism products, and a representative of 4 million American workers. Its sales volume in the United States reaches US $384 billion per year.

    During the current round of hearings, AAFA renewed his voice after the positive statement taken at the hearing in May. By listing 4 cases, he strongly requested that the relevant textiles, clothing and footwear be deleted from the list of taxes.

    AAFA adheres to its core proposition:

    A. strongly supports the 61-64 chapter of textiles, clothing and footwear products not in the list, and maintains that these items are still excluded from this list and any future list.

    B. objected to the textile and tourism products currently listed in the list.

    Hat and accessories

    And other related products impose duties.

    C. strongly supports the government's efforts to find a quick and meaningful solution to the trade disputes with China.

    The above arguments are based on the following core reasons:

    A. levying tariffs on products in the list or the 61-64 chapter is actually a covert tax on US consumers, especially because the most important source of imports from the United States is China.

    Since many of the products imported from China are also invested as raw materials for the manufacturing industry in the United States, any tax on these commodities will become a tax on manufacturing in the United States, thereby increasing the cost of production in the US.

    B. textiles, clothing, footwear and travel products account for only 6% of all imports. However, the United States has contributed 51% of the total tariff due to the us most favored nation tariffs on these products. Considering that China is the main source of imports from the United States, levying tariffs will bring considerable burden and cost to American consumers and manufacturers.

    2. against the Levy of customs agents: the American fashion industry association (USFIA):

    The American fashion industry association (USFIA) represents the collective interests of fashion brands and retailers in the United States, aiming to eliminate tariff and non-tariff barriers that impede free trade in the fashion industry and create jobs in the United States.

    USFIA advocates products that exclude lists:

    The 65 chapter is the hat and headwear.

    Luggage, bags and handbags in chapters 42 and 46;

    The 94 chapter is mattresses, lamps and furniture.

    Its member companies also expressed concern and objection to the classification of products in the 56 chapters, including some fabrics such as felt and nonwovens, special yarns, ropes, and 58 chapters (special textile products, including embroidery and labels).

    On the afternoon of August 23rd, the USFIA representative will attend the hearing and elaborate the above views and specific reasons.

    3. support the addition of customs agents: the National Federation of Textile Organizations (NCTO)

    The National Federation of Textile Organizations (NCTO) is an interest representative of some textile production enterprises and related enterprises in the United States. Its members cover the whole industrial chain of textile manufacturing.

    NCTO senior vice president Sarah Betty (Sara Beatty) said at the August 20th hearing that the association will continue to strongly support the president's 301 clause.

    She said that the act of stealing intellectual property rights in the United States greatly helped China's leading position in the global textile market, and the textile and garment manufacturers in the United States were seriously injured by the infringement of intellectual property rights in China, resulting in a reduction in production, export and employment.

    At the same time, the association was disappointed with the previous 200 billion dollar list of goods excluding textile and apparel terminal products (61-63 chapters).

    NCTO adheres to its core proposition:

    1. strengthen the traceability of garments purchased from the partners of the us free trade agreement;

    2. increase tariffs on clothing, home textiles and other end textile products and advanced technology textiles exported to China.

    3. it is proposed to delete acrylic and viscose staple from the list.

    4. it is recommended to remove all items related to textile machinery from the list.

    The above arguments are based on the following core reasons:

    1. clothing, home textiles and other textile products account for 93.5% of the US's imports of textiles and clothing from China, while intermediate products imported from China account for only 6.5% of the total imports.

    In view of the fact that almost all the materials made in China are manufactured in China, the fibers, yarns and fabrics are imported into the US market in the form of Chinese made downstream products.

    2. textile industry is China's 2025 key industry, with more than ten million direct jobs, most of which are concentrated in the final stage of supply chain: labor-intensive cutting and sewing.

    The textile made in China has gained a great competitive advantage in the US market through the so-called intellectual property "theft". Therefore, it is suggested that levying tariffs on textile terminal products will make the United States play the biggest role in promoting China's "meaningful reform".

    3.Sara Beatty, for example, said that a blue jeans made in China benefit from the "illegal trade practices" in every link of the Chinese production chain, enabling them to replace other similar products after entering the US market.

    The pre tax cost of a pair of jeans imported from China is US $7.5, and the cost of importing jeans from the free trade partners of the Western Hemisphere is $8.29.

    25% additional tariffs have increased the price of Chinese jeans by US $1.88, which has provided considerable impetus for us importers to import from China to the tax-free countries in the Western Hemisphere.

    4. it is recommended to remove acrylic and viscose staple from the list, because additional tariffs will weaken the competitiveness of the textile industry in the United States without producing these kinds of fibers.

    In addition to the recommendations for the textile chapter, NCTO also urges the removal of certain chemicals and dyes, which are an integral part of the textile production process and create additional value in the products, but to a large extent, can not be obtained from the US. Therefore, the increased cost of raw materials will damage the competitiveness of downstream domestic manufacturers.

    5. NCTO also strongly recommended that textile machinery and equipment be removed from the list of tariff commodities.

    Although textile equipment has been basically eliminated from the initial 50 billion list, a partial increase has been made in the new list.

    NCTO continues to propose to cancel all items related to textile machinery, because the equipment of American textile enterprises is almost entirely dependent on imports.

    The hearing turned into a "celebration conference" made in China.

    At the hearing, when asked by government officials whether they could find suppliers outside China, the overwhelming majority of delegates said China was "irreplaceable".

    More media reports said the hearing became a "praising conference" to commend China's manufacturing technology.

    According to the South China Morning Post, companies are talking about how reliable Chinese manufacturing is.

    Witnesses cited the quality of Chinese labour, China "s capacity for", "s, capacity, for", "the", "the representative of the hearing" invoked China's high quality labor force, China's high capacity, and could not pfer the supply chain to other countries for a short time, as opposed to further punitive tariffs.

    Some enterprises praise Chinese workers for their exquisite workmanship and excellent quality.

    Ross Bishop, founder of Ross, said that Chinese people are "very good at" their own work ("really good" at their work): "If you pick the the, Bishop", "if you choose the right factory, they are actually artists."

    David Matheson David Matheson, a leather goods company Leather Miracles, says that Chinese laborers have nowhere else to match: "There is no comparison. If I was was," Hsin ",", ",", ",", ",", "and" other ".

    If I want to form a labor force, the first, second, third, fourth and fifth choices will be China, there will be no other places. "

    Some enterprises are inseparable from China's high quality and low price.

    Some enterprises emphasize that the scale of production in China is not comparable to that in other places.

    Judging from the testimony at the hearing, the US SMEs are very dependent on Chinese suppliers, but in turn, China has many choices.

    Stephen Ron, President of the American Wedding Dress Industry Association (Stephen Lang), said: "If you look at history, punitive taxes don" t, "taxes", "you", "360"

    We are only a small country with only 360 million people. There are so many countries to choose from. China can do business with other countries. "

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