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    Sino US Trade Is About To Renegotiate. Will Kim Gu's Peak Season In Textile Industry Be Affected?

    2019/9/18 10:12:00 2

    Sino US TradeTextile Industry

    China and the United States 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.

    At three p.m. on September 5th, the Ministry of Commerce held a regular press conference. The spokesman for the Ministry of Commerce said that the thirteenth round of Sino US economic and trade consultations will strive for substantial progress on the basis of full preparations for both sides.

    Moreover, China firmly opposes the escalation of trade war, which is not good for China, neither for the United States nor for the whole world.

    The people's daily also published a high level consultation on Sino US trade and economic cooperation. 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.

    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.

    Traders in China and the United States showed cautious changes in news.

    According to the updated monthly report of the International Cotton Advisory Committee, 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) to the new low in July (2019).

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

    Affected by the escalation of trade wars, prices of more than 400 imported chemicals increased.

    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.

    According to industry analysis, the supply of chemical raw materials in the United States will be reduced in the late period, which is likely to have an impact on the prices of imported raw materials, driving up the price of some imported raw materials and chemical products.

    In recent years, the loom rate has gradually increased in many areas, and the inventory of grey fabrics has begun to decline.

    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 partial heating phenomenon, especially the elastic fabric transaction has been enlarged obviously.

    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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