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    China And The US Resume Negotiations. Will Kim Gu's Peak Season In Textile Industry Be Affected?

    2019/9/6 16:05:00 2

    Sino US TradeRestart ConsultationKim GuBusy Season

    On the morning of September 5th, the CPC Central Committee Political Bureau member, the vice premier of the State Council, and the Chinese leader of the Sino US comprehensive economic dialogue, Liu He, spoke with the US trade representative, Mr. lettchet, and finance minister Mnuchin.

    The two sides agreed to hold the thirteenth round of high-level Sino US economic and trade consultations in Washington at the beginning of October, after which the two sides will maintain close communication. The working group will conduct serious consultations in mid September to make full preparations for substantive progress in high-level consultations. The two sides agreed that joint efforts should be made to take practical actions to create favorable conditions for consultation. Minister of Commerce, Zijin Mountain, President of the people's Bank of China Yi Gang, Ning Jizhe, deputy director of the national development and Reform Commission, attended the call.

    At three p.m. on September 5th, the Ministry of Commerce held a regular press conference. The spokesman of the Ministry of Commerce answered the questions of Chinese and foreign reporters on the recent hot topics. Summit said at a news conference, the two sides will discuss the specific arrangements for the thirteenth round of Sino US economic and trade high-level consultations. On the basis of full preparations for the two sides' working level, the thirteenth round of Sino US economic and trade consultations will strive for substantial progress.

    He said that China firmly opposes the escalation of trade war, which is not conducive to China, nor to the United States, nor to the whole world.

    The people's daily also published the article that in September 5th, the Sino US economic and trade consultation held a positive message. The two sides formed a consensus and pointed out that "joint efforts should be made to take practical actions to create favorable conditions for consultations". The two sides have defined the timetable for action, and held the thirteenth round of high-level Sino US economic and trade consultations in Washington at the beginning of October, after which the two sides will maintain close communication. The working group will conduct serious consultations in mid September to make full preparations for substantive progress in high-level consultations. This is a common rational choice between China and the United States and deserves the expectation and welcome of the international community.

    For some time, the gloom of Sino US economic and trade frictions has not only affected the economies of the two countries, but also brought negative effects to the world economy with many uncertainties. How to see and how to do it is a realistic problem that can not be avoided and can not be recklessly dealt with in front of China and the United States. China's position of "resolutely opposing trade war" is consistent and firm. China has repeatedly expressed its hope that the two sides will deepen mutual understanding, seek common ground while reserving differences, and properly solve the problem on the basis of equality and mutual respect.

    Trade relations between China and the United States have always been a topic of great concern to textile workers. In addition to the direct impact of tariffs, Sino US relations also affect the macro economy at all times, both in terms of international crude oil prices and the exchange rate of the renminbi against the US dollar, which are closely related to the textile industry chain. What is the impact of the resumption of consultations between China and the United States?

    Today, during the peak season, textile foreign trade enterprises have been affected by different trade frictions. Some foreign trade bosses also say that this year, besides the US market, the number of more high-end market orders similar to Europe is also decreasing. On the contrary, the number of importing countries in Southeast Asian countries is increasing rapidly due to the rapid development of the garment industry.

    The repeated changes in Sino US news have made traders more cautious about the negotiation.

    According to the updated monthly report of Cotton Advisory Council (ICAC), the cotton price of the Cotlook A index has dropped from 99.5 cents per pound in August 2018 to 74 cents in July 2019. The uncertainty in the US China trade war has pushed cotton prices down from the seasonal high in August (2018) in August to a new low in July (2019).

    In the early May, tensions between the US and China further escalated, including the US tariff of 25% on imports from the mainland of China, plus the punitive tariff of up to 25% to the US $300 billion imports from the mainland, including all textiles, clothing and footwear. This tone seems to have moderated with the new trade negotiations between the two sides.

    According to the latest data, the price of more than 400 imported chemicals is rising due to the escalation of Sino US trade war.

    Since the US government announced that it had imposed a 10% tariff on imports of about 300 billion US dollars from China, the two batches have been implemented since September 1, 2019 and December 15th. The US side's measures have led to the continued escalation of Sino US economic and trade frictions, which has greatly damaged the interests of China, the United States and other countries, and also seriously threatened the multilateral trading system and the principle of free trade.

    There are more than 400 items of tax items involving chemical and raw materials, and the rate of increase is 5%. These include barium sulfate, calcium carbonate, polyacrylamide, black printing ink, disperse or soluble polyurethane paint and varnish in non-aqueous media.

    As trade frictions between China and the United States continue to escalate, from now on, importing part of China's imports of chemical raw materials and other commodities will be subject to tariffs. According to industry analysis, the supply or reduction of raw materials in the US chemical industry will likely affect the prices of imported raw materials and promote the price of some imported raw materials and chemical products.

    Recently, the loom rate has gradually increased in Shengze, and the inventory of grey fabric has dropped to about 41 days.

    At the same time, the market has eased at the recent stage, and there have been some explosion phenomena in some dyeing factories. In addition, the dyeing fees in Zhejiang have also been increased. Generally speaking, only the market has improved, and the dye factories have the bottom gas price increase. The fabric market also has a partial hot phenomenon, especially the elastic fabric turnover has been significantly enlarged, and the hot products are mainly T400 and T800.

    At the end of last month, the weaving factories were making up the warehouse operation, and at present, the rate of loom start up has increased, and the market has improved. In the present form, the impact of single news on weaving factories may not be great.

    This year's textile market has been described as "the worst year" due to overcapacity. I wonder if trade between China and the United States will increase again or again in the peak season of September?

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