Sino US Trade Friction, Textile And Garment Industry

In May 13, 2019, the office of the United States Trade Representative (USTR) announced a 25% tariff list of approximately $325 billion for Chinese products (referred to as the list of 4), which covers the larger proportion of clothing exports to China (HS61, 62 chapters) and most domestic textiles (HS63, 94 chapters) and some textile machinery products (HS84 chapter), which relate to the export volume of our industry to US $40 billion.

At present, the United States is soliciting public opinions on the list and will hold a public hearing in June 17th.

Whether or not we will impose a 25% tariff on the $300 billion list of Chinese commodities will also be consulted after the public hearings.

Prior to May 9th, the US government announced that since May 10, 2019, the tariff rate on imports of $200 billion from China (short list 3) has increased from 10% to 25%, including almost all kinds of textile yarn, fabrics, knitted goods, manufactured goods and some household textiles and textile machinery products, which exported more than US $4 billion to the US, and two lists have almost covered all textile products exported to the United States in a complementary form, amounting to about 45 billion US dollars.

The US side's measures have led to the escalation of Sino US economic and trade frictions, violating the consensus between China and the United States on resolving trade disputes through consultation and damaging the interests of both sides, which do not meet the general expectations of the international community.

In order to safeguard the multilateral trading system and safeguard its legitimate rights and interests, the Customs Tariff Commission of the State Council has decided to raise the tariff rate of US $25% from the list of US dollars which has been imposed on Tariffs since June 1, 2019 at 0 o'clock, and impose 25%, 20% or 10% duties respectively.

In addition, there are many chemical fiber raw and auxiliary materials, including 47020000 dissolved chemical wood pulp, 29094300 ethylene glycol or two glycol mono butyl ether, 29094400 ethylene glycol or two glycol glycol other mono alkyl ethers, 29269090 other nitrile compounds (adiponitrile under this tax item) and other products to maintain a 5% tariff rate, which has a certain impact on the regenerated cellulose fiber industry and the nylon 66 industry.

The Customs Tariff Commission of the State Council pointed out that the adjustment of tariff measures by the Chinese side is a response to unilateralism and trade protectionism.

China hopes that the US side will return to the correct track of bilateral economic and trade consultations and work together with China to strive for a mutually beneficial and win-win agreement on the basis of mutual respect.

Trying to exclude tariff goods from us and Canada

Recently, the State Council Tariff Commission issued a notice to try to eliminate tariffs on commodities in the US and Canada.

According to the announcement, the Customs Tariff Commission of the State Council has accepted the application of the relevant stakeholders, and on the basis of examining the applications one by one, excludes some of the eligible commodities from the scope of tariffs imposed by the US and Canada, and formulating the announcement and exclusion list.

Excluding the commodities in the list, we will not levy any additional duties on the 301 measures against the United States within one year from the date of the implementation of the exclusion list. If the conditions of refund are refundable, the customs duties that have been added will be refunded. The relevant importing enterprises shall apply to the customs within 6 months from the date of the publication of the list.

Tariffs on goods that have stopped or have been suspended before the publication of the list is not refunded.

Ministry of Foreign Affairs: China has never been bent on external pressure.

China has always maintained a calm and constructive attitude towards the volatility and limitation of the US side.

In May 13th, a spokesman for China's Ministry of foreign affairs responded at a regular press conference that tariffs could not solve any problems, and China would never succumb to external pressure. China is determined and capable of safeguarding its legitimate and legitimate rights and interests.

In May 14th, the Chinese side once again said that launching trade wars would only hurt people, but China would not want to fight or fight for trade wars, but it would never fear to fight.

CCTV international sharp comment: China has made preparations for comprehensive response

CCTV published an international sharp comment entitled "China's preparations for a comprehensive response", commenting that no matter how changeable the external situation is, the most important thing for China is to do its job well, deepen reform and open wider to the outside world, so as to achieve high quality economic development.

The next step for the United States is to talk about whether to fight or to take other actions. China has already prepared its policy toolbox and prepared for a comprehensive response.