Trade War Data Analysis: How Many Textile Companies And Products Are Involved In The 200 Billion US Tariff Increase?

At 12 noon on May 10, 2019 (0 p.m. EDT), the US Customs and border Administration (CBP) issued a formal statement, raising the tariff from 10% to 25% for the third batch of about 200000000000 US dollars of Chinese goods (that is, 200 billion goods which began to levy 10% tariffs in September 24, 2018). The 0 batch of goods sold in the United States was issued at the same time.

On the same day, the United States Customs and Border Protection Agency (CBP) announced the implementation of this tax.

It said it would raise tariffs to 25% for products exported to the United States and imported in the United States after May 10th.

However, a tariff of 10% will be levied on products exported to the United States before May 10th and will be declared in the United States after May 10th.

The agency has not yet published specific implementation details on how to determine shipment time.

At present, enterprises can choose to pay 25% tax according to the customs declaration process, apply for refund after the promulgation of rules, or submit an import declaration for 10 days.

In response, a spokesman for the Ministry of Commerce said that the United States had raised the tariff of $200 billion on China's exports to the United States from 10% to 25%. China deeply regrets that it will have to take the necessary counter measures.

The Ministry of Commerce has said that the 200 billion tariff list issued by the United States covers six major commodities, such as electrical and mechanical, light industry, textile and clothing, resources and chemical industry, agricultural products and medicines.

In the affected enterprises, foreign-funded enterprises may account for nearly 50%.

According to Xinhua News Agency reported on May 9th, Liu He, member of the Political Bureau of the CPC Central Committee, vice premier of the State Council and Chinese leader of the Sino US comprehensive economic dialogue, have arrived in Washington and will hold the eleventh round of high-level Sino US economic and trade consultations with the US side.

When Liu He arrived, he told the media that I came with sincerity and hoped to exchange views with the US in a rational and frank manner under the current special circumstances.

China believes that tariff increases are not a solution to the problem, which is not good for China and the United States, but also bad for the world.

How many textile companies and products are involved in the 200 billion US dollars?

According to the statistics of the China Textile Import and Export Chamber of Commerce, the tax collection list of the US proposal covers 6031 tax numbers, of which more than 1000 textile and clothing products are tax, which involves most textile materials, semi-finished products and a small number of clothing accessories, mainly including textile raw materials (cotton, silk, wool, hemp, etc.); yarns and fabrics (cotton, wool, silk, hemp, chemical fiber, glass fiber, etc.); carpets; industrial textiles; leather and fur clothing, hat and gloves, plastic raincoats and so on.

China's exports to the United States, such as woven garments, knitted garments and household textile products, are not included in the list.

China's textile and clothing exports to the United States amount to about 10 billion 300 million US dollars, accounting for about 16% of China's exports to the US textile and clothing and raw materials, and about 1.7 000 of its export enterprises.

According to the preliminary arrangement of the China Textile Import and export chamber, there are about 900 tax numbers in the list, and 927 textile products cover almost all products involved in the HS50-60 chapter.

All yarns, fabrics / fabrics including various raw materials (cotton, wool, silk, hemp and chemical fiber), as well as industrial textiles and some textile machinery products, involve us $7 billion 400 million in annual exports to the United States.

This list excludes clothing products and most household textiles.

How to upgrade Sino US trade?

Hua Fu holdings and Sun Weiting, chairman of Huafu fashion, once said: "Sino US relations are different from those of previous rounds of big powers. Their teeth and lips depend on each other, whether they are market relations or financial relations. They are hardly alone. In the long run, they are still a win-win relationship.

Textile and clothing are not the focus of disputes. There is no need for them to have excessive psychological burden.

If we look at the role of turning the crisis into a machine, it is also a catalyst for China's textile and garment industry to go out.

Believe in the words of the forefathers: the general trend and the right way.

In China, the trend is to do well in our own affairs, and the national destiny can be sustained.

Sino US trade conflict, financial leverage, any company running will be under pressure.

How can we avoid the reduction in orders, falling prices, increasing inventories and increasing the risk of accounts receivable?

Our countermeasures are: ensuring growth, quality and efficiency, and controlling risks.

The relevant person in charge of Shanghai Hua Shen import and Export Co., Ltd. said: "we need to improve the investment environment in China, encourage the textile and garment industry to upgrade its technology, and strengthen the free trade agreement with ASEAN, the European Union, the countries along the route and the central and South American countries, so that China's textile and clothing products will have more sales targets."

A leading exporters in Jiangsu said: "textile products are not sophisticated, and have strong substitutability. Combined with low profit margins, the ability to withstand pressure is tested."

Conclusion: in any case, this round of tax increases will have a greater impact on the export of textiles and garments in China. In the long run, it will speed up the pfer of US buyers to Southeast Asia and other places, promote the development of textile industry in Southeast Asia, and form a "long way out" relationship with China's textile industry.

Although the vast majority of textile and clothing products exported to the United States are not included in the list, the impact of Taxation on the industry can not be ignored.

Since April, textile consumption has continued to be weak. The Levy of this tariff is undoubtedly like a "fate urge", making textile enterprises and traders more skating, and the pessimism of the market is aggravated.

Of course, the market is also looking forward to the eleventh round of negotiations to bring about a trend.