The US And Southeast Asian Markets Have Made Good Progress In Textile Trade In 2020.

Because of the reasons for the cold trade between China and the United States and other aspects, the textile foreign trade market in 2019 has declined greatly compared with the previous two years, especially the US, which is half the number of last year. This year is drawing to a close. The quality of the market is basically a foregone conclusion. Therefore, textile people pay more attention to the foreign trade market next year. The recent positive news may give us a glimpse of some signs of next year's market.

The US market is expected to be dredged: the tax code involving 15 textile and garment products has been eliminated.

China's Ministry of Commerce recently said that China and the United States have agreed to phased out tariffs in the past two weeks. In November 7th, the United States Trade Representative Office (USTR) announced the fourth batch of product exclusion notice under the list of 200 billion tariff products. This excludes a total of 36 products, including 3 textile and clothing products.

Up to now, the United States has issued 4 batches of 200 billion product elimination lists, of which first batches involve 2 textile and garment products tax numbers, the second batch relates to 3 textile and garment products tax numbers, third batches of 7 textile and clothing products tax numbers, and a total of 15 textile and clothing products tax numbers. The excluded products will no longer be subject to a 301 tariff when they export to the United States. Exclusion period can be traced back to the date of entry into force of the 200 billion list - September 24, 2018. The validity of the excluded products listed in this notice is from September 24, 2018 to August 7, 2020.

The HS codes of textile and clothing products specifically excluded are as follows:

In past research, textile bosses almost agreed that tariff increases caused by Sino US trade war were the main reasons for the "cold" of textile foreign trade market this year.

For textile bosses, the tariffs imposed by the United States are "moving all over the body", and some weaving enterprises themselves do not export, but downstream fabrics, clothing and luggage enterprises have procured their products for export after processing. But nowadays, tariffs of 25% or even 30% are unbearable for the production, processing or circulation of products, and the profits of China's weaving enterprises, which account for the profit of the terminal retail, can not be enjoyed.

As for Xiaobian's understanding, after the sudden increase in taxes in the United States, many foreign trade companies were withdrawn from the US due to "unwarranted" reasons when the order was close, which caused huge losses to Chinese enterprises and also greatly damaged the confidence of the market.

Now, China and the United States have begun to abolish the imposed tariffs. Many of the orders that cannot be done now will be implemented.

Good news from Southeast Asian market: RCEP signed next year, China's textile exports or declining trend

On the evening of November 4th, leaders of 16 ASEAN countries and China, Japan, South Korea, Australia, New Zealand and India issued a joint statement after the meeting, saying that except India, the 15 member states of the regional comprehensive economic partnership agreement (RCEP) have concluded all text negotiations and substantive market access negotiations, and are ready to sign an agreement next year.

As we all know, Southeast Asia is the most rapidly developing emerging market in the textile industry. In recent years, the import and export of textiles has been increasing rapidly, and Japan, Korea, Australia and New Zealand are also important exporters of textiles in China.

Today's Southeast Asian textile industry has an ample labor advantage, but the infrastructure and technology level is weak. Once the agreement is signed, the complementary advantages of the textile industry between China and Southeast Asian countries will be more obvious. China's textile raw materials, grey fabrics and fabrics can be transported to Vietnam, Malaysia and other places with less processed goods, making use of the advantages of the local labor force to make garment exports.

For the developed countries such as Japan, Korea, Australia and New Zealand, after the establishment of RECP, textile export tariffs will be further reduced, and Chinese textiles will be more competitive than they are now.

During the visit, cloth boss generally expressed a dissatisfied mood to this year's market, but also felt that the probability of such a market's continuation is not high. Indeed, the "cold winter" of textile exports this year is due to a combination of various factors, and more of an occasional phenomenon. With the acceleration of transformation and upgrading of China's domestic textile industry and the opening up of the emerging market of foreign trade, next year's textile foreign trade may get more opportunities, turning the declining trend this year.

Affected by various factors, this year's textile foreign trade quotas are "cold". However, there are many signs that the foreign trade situation next year may be better than this year. But even so, the international situation is changing rapidly. Today, there is a threat that the United States will increase tariffs if Trump fails to reach an agreement. The situation of Sino US trade is becoming more and more complicated. There will still be great uncertainty in the market next year. But in a word, the most difficult time is over. The textile enterprises in the future can neither lose confidence nor prepare ahead of schedule.