US Textile And Apparel Supply Chain Representatives Appeal For Win Win

Washington time on June 17th, the US government held the first day of the 7 day series hearing to levy tariffs on 300 billion US dollars in goods exported to China. Cashmere in New York Garment factory Shang, California baby products manufacturer, Massachusetts Gym shoes Representatives of manufacturing companies went to the International Trade Commission building in the south of Washington, capital of the United States.

Dozens of trade associations and representatives from all parts of the United States came to "Chen Qing". Most of them called on the US government not to levy a new tariff on Chinese goods, saying that "we can not do without the supply chain of China, and can not afford a new round of tax increases".

It is worth noting that President Xi Jinping made an appointment with President Trent in June 18th. Trump said in a call that the US side attaches importance to Sino US economic and trade cooperation, and hopes that the two sides' working team can communicate with each other and find ways to resolve the current differences as early as possible. I believe the world wants to see an agreement between the United States and China. Xi Jinping also agreed that the two countries' economic and trade teams should maintain communication on how to resolve their differences.

Tax increases directly impact on American consumers

Unlike the previous rounds of US tariffs on China, mainly concentrated on intermediate products and industrial products, most of the proposed tariff list on the new round of China's New Zealand is the most familiar terminal consumer goods, including mobile phones, laptops, clothing, etc. footwear Toys, game equipment, etc. Once these tariffs are implemented, American consumers will be directly affected.

Rick Helfenbein, President and chief executive officer of the AAFA, spoke at the hearing and objected to the US $300 billion levy. He mentioned three points in his testimony: tariffs do not solve the IPR problem; do not impose taxes on American consumers; do not tax American manufacturers. "One thing to note is that we need to make sure that attempts to solve problems affecting our industry will not jeopardize our overall trade partnership and be able to remedy the problem. Raising tariffs does not solve our problems. Please do not take any additional tariff measures to suppress us. Please remove our products from the tax list. Rick Helfenbein indicates.

U.S.A fashion Brent Cleveland, executive director of jewelry and accessories trade association, made the first speech at the hearing. Cleveland said that importing these daily consumer goods would not jeopardize American security, but adding tariffs would damage the interests of small and medium-sized enterprises and consumers in the United States.

Mark Schneider, chief executive of the American footwear and footwear company, Kenneth Karl, also said that tariffs on goods imported from China would force the company to share losses with retailers and consumers.

Lisa Trov, executive director of the American Association of young product manufacturers, said that if tariffs were imposed on imported products from China, many American families would not be able to afford safe infant products, which would endanger the safety of infants and young children.

Carey Stark Bohr, chief executive of the International Plumbing Manufacturers Association, is very puzzled about the inclusion of pipeline products in the proposed tariff list. He said: "toilets and faucets are an important part of home. We think it is wrong to impose tariffs on these products, which is not conducive to keeping American homes and buildings clean. "

Representatives of American electronics retailers such as best buy, new brun sports shoes, the Federation of footwear and footwear industry, Toy Association and other enterprises and industry associations also warned on the same day that tariffs on China would increase the cost of American consumers, disrupt production and damage employment in the United States.

Before the hearing, the office of the trade representative of the United States has received more than 1600 written comments submitted by representatives from all walks of life. Most of them oppose the US government's tariffs on Chinese goods. The Washington Post believes that a lot of opposition reflects the growing concern about tariff policy in the US business sector and the exhaustion of the president's trade policy.

The United States lobbying organization "tariffs harming the hinterland of the United States" recently quoted a study that said that if additional tariffs of US $300 billion on China's exports to the United States were added, plus tariff measures that had already taken effect, the United States would lose 2 million jobs and the gross domestic product would be reduced by 1%.

The global supply chain is inseparable from China.

At the hearing, what the US government officials asked most was whether the enterprises could shift the supply chain from China. Entrepreneurs and industry representatives repeatedly and patiently explained: China's supply chain system is mature and complete, and it is not easy to shift the supply chain from China; it is even impossible for some industries, because China is the sole source of imports for many products.

Joan Croff, chief executive officer of New York Quin clothing, said that the imported cashmere garments must be made of high quality cashmere from Alashan sheep in Inner Mongolia, China. Spin The technology level is high and the quality is guaranteed, so the product supply chain can not be spanferred from China.

Schneider, who is also engaged in shoes and caps and bags business, said: "over the years, we have established an efficient and stable supply chain in China. If the supply chain is spanferred to other countries, product quality, capacity and cost performance can not maintain the original level. Moving back to the US production is not feasible, because there is no supporting facilities for the development of related industries. "

Rick Helfenbain, President of the Federation of clothing, footwear and footwear industries in the United States, admitted that they had tried to shift the supply chain from China, but the Chinese footwear and footwear industry always did better than other places. He said that despite the rapid rise in labor costs in China over the past few years, China has successfully maintained its competitiveness through improving labour productivity.

The "China Economic Bulletin" issued by the world bank in May pointed out that when investors decide whether to move out, they will consider not only the wage differences of different countries, but also other related factors. China's complete supplier ecosystem, good labourers' skills and business culture are all valued by investors. Nicholas Radi, a senior researcher at the Pedersen Institute of international economics, told Xinhua that foreign direct investment into China is still at a high level and is still rising.

Sino US economic and trade cooperation benefits both sides

At the hearing, the speeches of the delegates once again showed the essence of mutual benefit and win-win relationship between China and the United States.

Schneider, who has been doing business with China for 35 years, said that his cooperation with Chinese business partners has been very enjoyable. China is a good supply base, and trade relations with China benefit American consumers. He emphasized that tariffs on shoes, hats and bags could not solve the concerns of the US government.

Bob Magvicius, member of the board of directors of the bicycle parts suppliers association, said that China is an important part of the global bicycle supply chain. The United States bicycle manufacturers and Chinese partners have been working well for many years, and the two sides have established a very close cooperation relationship.

In the near future, 520 companies and 141 trade associations in the United States have joined the United States' President Trump, urging the US government not to impose tariffs on imports from China, but to return to the negotiating table to reach a solution with China.

The United States intends to impose a new tariff list on China's new textile industry, which involves a large proportion of our textile industry's exports to the United States and most of its household textiles and some textile machinery products, which relate to our industry's exports to the US for over 40 billion US dollars. Whether or not we will impose a 25% tariff on the $300 billion list of Chinese commodities will be consulted after the public hearing, and will be based on the latest progress of Sino US trade negotiations.

Judging from the testimony of dozens of trade associations and company representatives on the first day of the hearing, it is not a good idea to impose a new round of tariffs on Chinese goods. Looking forward to a new progress in Sino US trade negotiations after telephone exchanges between the two heads of state and objections from domestic industry representatives.

It is understood that the United States in the June 18th call mainly raised two appeals. One is to hope that the heads of state of the two countries can meet during the G20 summit in Osaka, and the two is to hope that bilateral economic and trade teams can communicate. China agreed to meet during the call, but reiterated its position:

"In recent years, Sino US relations have encountered some difficulties, which are not in the interests of both sides. Sino US cooperation is both beneficial and damaging. On the basis of mutual understanding and mutual benefit, the two sides should push forward Sino US relations based on coordination, cooperation and stability.

In terms of economic and trade issues, the two sides should solve problems through equal dialogue. The key is to take care of each other's legitimate concerns. We also hope that the US side will treat Chinese enterprises fairly. "

In particular, it is noteworthy that in the press release, China's important consideration for the meeting of the heads of state is the need to exchange views on the fundamental issues concerning the development of relations between China and the United States.

China's Foreign Ministry spokesman Lu Kang said in June 19th that Sino US differences in economic and trade fields can be found through dialogue and consultation, provided that such dialogue and consultation are based on mutual respect, equality and mutual benefit.

In the final analysis, the final outcome of Sino US economic and trade issues still depends on whether some people in the United States can really solve the problem through "equal dialogue", and are willing to really "take care of each other's legitimate concerns".

At this point, we still need to maintain our common sense and maintain our pace of development.

The key is to do well in our own affairs.

Source: Xinhua Daily, people's daily economic daily, China Textile Import and Export Chamber of Commerce