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    Sino US Dispute, Vietnam Gains! China'S Textile Industry Has Encountered Many Challenges: What To Do Next?

    2019/6/25 9:30:00 1186

    Sino US Trade WarVietnamChinese Textile Enterprises

    At a recent press conference of the Ministry of Commerce, the spokesman pointed out that China's imports from the US fell for 5 consecutive months. This shows that there is no winner in the trade war, which may have a destabilizing effect on the US economy and the world economy.


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    Exporters: year-end peak season or affected, the amount of stock decreased significantly.


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    For exporters, the impact of trade wars may be most direct. They do not want their trading products to be included in any tax increase by either side.


    The most obvious feeling that the Sino US trade war has started is that there is a certain decline in orders on the US line, which will also have an impact on the preparations for the end of the season. For example, the amount of stocking will be reduced accordingly, so as to reduce the risk. In the current trade situation, the most important thing is to control risks.


    At the same time, the export enterprises in the future may also face rising prices of raw materials and higher costs. Eventually, they will be passed on to consumers, reducing the desire of consumers to buy some commodities, and terminal demand will inevitably be implicated.


    Since the trade war, the obvious change is that the exporter's cost has risen. After all, a part of the extra tax should be added on the basis of the original cost. This requires the sellers to keep their advantages in the competition, and try to avoid the original operation and upgrade the operation to the fine operation. All along, export textile homogenization is more serious, and lack of corresponding core competitive advantage and irreplaceable nature, often rely on price to win. Now, once the exchange rate, tariff and international trade environment change, sellers will encounter difficulties.


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    American brand enterprises: we can not do without China's supply chain.


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    Unlike the previous rounds, the United States imposed tariffs on China mainly from intermediate products and industrial products. Most of the proposed tariff list of the United States is the most familiar terminal consumer goods, including mobile phones, laptops, clothing, footwear, toys, game equipment and so on. Once these tariffs are implemented, American consumers will be directly affected.


    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 clothing manufacturers in New York, baby products manufacturers in California, representatives of sports shoes manufacturing companies in Massachusetts went to the US International Trade Commission building in the south of Washington, capital of the United States.


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


    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".


    For the US side, 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 cashmere garments imported from the company must be made of high quality cashmere produced from Alashan sheep in Inner Mongolia, China. At the same time, China's textile technology level is high and its 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.


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    Sino US competition, Southeast Asian gains: Vietnam's many textile and garment factories have filled full year orders.


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    It is understood that many textile and garment factories in Vietnam have been filled with orders for the whole year, and the export volume will break through 40 billion US dollars.


    The Vietnamese people's Daily: 6000 textile and garment enterprises account for 15% of Vietnam's total exports, making Vietnamese textile and apparel one of Vietnam's fist economic sectors and making Vietnam one of the three largest exporters of textiles and clothing. In particular, the free trade agreements (FTA) are expected to become a booster for Vietnam's textile and clothing export growth.


    The chairman of the Vietnam textile and Garment Association (Vitas), Mr Wu De Jiang, said that from now until the end of the year, Vietnam's textile and clothing exports will maintain a good growth momentum, with an export volume of about 160-180 billion dollars. At present, many enterprises have accepted annual orders. It can be seen that the total export volume of textiles and clothing reaches US $40 billion, which can be achieved.


    Under the background of Sino US trade friction, China's apparel trade orders are struggling, and Vietnam's garment manufacturing industry is striding forward. This can not but cause industry vigilance.


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    afterword


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    All in all, in today's severe Sino US trade situation, what China's textile enterprises must do is to maintain their common sense and maintain our pace of development. The key is to make good products.
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