The Sino US Trade Talks Are Beginning To Dawn On Us, And The Textile Industry Is Rekindling "Hope".

Recently, the State Council issued the Chinese statement on the first stage economic and trade agreement between China and the United States, saying that after the joint efforts of the economic and trade teams of China and the United States, the two sides agreed on the text of the first stage economic and trade agreement between China and the United States on the basis of equality and mutual respect. The agreement includes nine chapters, including preamble, intellectual property rights, technology transfer, food and agricultural products, financial services, exchange rate and transparency, expanding trade, bilateral assessment and dispute settlement, and final provisions. At the same time, the two sides agreed that the US side will fulfill relevant commitments to phasing out tariffs on Chinese products at a phased stage, so as to achieve a shift from increased tariffs to lower tariffs.

China believes that China and the United States as the world's largest economies must handle the economic and trade relations between the two countries from the overall situation, and conclude that economic and trade agreements are conducive to the fundamental interests of the Chinese and American peoples and the people of the world, and will have positive effects in economic and trade, investment and financial markets. This agreement is in line with China's general direction of deepening reform and opening up, and its inherent needs to promote the development of high quality economy. The implementation of relevant agreements will help to strengthen intellectual property protection, improve business environment, expand market access, better safeguard the legitimate rights and interests of all kinds of enterprises including foreign enterprises in China, and also protect the legitimate rights and interests of Chinese enterprises in the US economic and trade activities. With the expansion of China's domestic market, Chinese enterprises, in accordance with the WTO rules and the principles of marketization and commercialization, will increase the import of high-quality and competitive products and services from all countries including the United States, which will help to conform to the trend of domestic consumption upgrading and meet the growing needs of the people. This agreement is conducive to strengthening Sino US cooperation in the field of economic and trade cooperation, effectively controlling and resolving differences in economic and trade fields, and promoting stable development of Sino US economic and trade relations. In the context of the current downward pressure on the global economy, this agreement is conducive to enhancing confidence in the global market, stabilizing market expectations, and creating a favorable environment for normal economic and trade activities and investment activities.

The two sides agreed that the two sides would complete the legal examination and translation of the necessary procedures as soon as possible, and negotiate the specific arrangements for the formal signing of the agreement.

After signing the agreement, it is hoped that both sides will abide by the agreement and work hard to implement the relevant contents of the first stage agreement, do more things conducive to bilateral economic and trade relations and global economic and financial stability, and safeguard world peace and prosperity.

Important progress of Sino US economic and trade consultations, textile industry rekindle hope

In December 13th, in the statement issued by the US Trade Representative Office (USTR) on the first stage economic and trade agreement between China and the United States, the US tariff changes on Chinese imports were as follows: (1) 250 billion US dollars of goods (34 billion +160 billion +2000), the tariffs added to them remained unchanged, and 25% remained; (2) the 120 billion US dollar products (300 billion US dollars A list commodities) added in September 1st were added. The tariff will be reduced from 15% to 7.5%; (3) the $300 billion B list commodity (originally added in December 15th) will be suspended.

In the above three rounds of tariff collection list, textile and clothing products were included: (1) 200 billion dollars increase tax: mainly 7 kinds of products, including textile raw materials, yarn and fabric, including about 10 billion 300 million US dollars, accounting for about 16%, while the export volume of woven fabrics, knitted garments and home textiles to the US is not in the scope of taxation; (2) the A list of 15% tariff added in September. It includes clothing and accessories, and so on. (3) postponement of Taxation in the B list includes: footwear, non knitted or crocheted garments and accessories, knitted or crocheted garments and clothing accessories, that is, almost $300 billion of tax collection products contain almost all categories of textile and clothing.

On December 15th, the Customs Tariff Commission of the State Council of China said on Sunday December 15th that it had originally planned to impose tariff measures on some imported commodities originating in the United States from December 15th, while other tariff measures against the US and Canada continue to be carried out according to the regulations, and the elimination of tariff commodities in the US and Canada continued.

The above information shows that there is no difference between the two sides on tariff issues, that is, no further tariffs should be imposed and some tariffs should be abolished. In the future, it is possible to adjust the tariff accordingly as the situation changes. The news seems to confirm that the Sino US trade negotiations are making positive progress and positive for the market.

The Nomura global market research team said the agreement between China and the US was positive and avoided the recent escalation of Sino US trade disputes.

The Sino US trade agreement was initially reached, and the market came with positive signals.

China and the United States have announced a "first stage" agreement, and the United States has suspended the plan to impose a 15% tariff on Chinese products in December 15th, which will have a positive effect on stabilizing the export demand for textiles and clothing to the United States in December 15th.

The long-awaited agreement may ease tensions between the US and China and let some domestic foreign trade enterprises breathe a sigh of relief. Over the past few months, Sino US trade friction has affected these enterprises to varying degrees, and the main problem facing them is the reduction of US market share and the compression of their profit margins. What is even more painful to them is that the uncertainty brought by trade friction and the change of US tariff policy bring many difficulties to them.

According to the data released by the General Administration of Customs of China, the total trade volume between China and the United States was 3 trillion and 400 billion yuan, or 11.1%, in the first 11 months, accounting for 11.9% of the total value of our foreign trade. Among them, exports to the United States amounted to 2 trillion and 640 billion yuan, down by 8.4%; imports from the United States decreased by 763 billion 50 million; the trade surplus with the United States was 1 trillion and 880 billion yuan, narrowing 3%. Over the same period, China's total imports and exports totaled 9.9% yuan for the countries along the belt and the road, an increase of 9.9%, higher than the national growth rate by 7.5 percentage points, accounting for 29.3% of the total value of our foreign trade, and the proportion increased by 2 percentage points.

The results of Sino US negotiations will bring marginal improvement to the export of textile and clothing. The reduction of tariffs will enhance the competitiveness of Chinese textile products, increase export growth and improve the profitability of export enterprises.

At the same time, the good news has boosted the domestic textile market. On the 13 day, the Sino US trade negotiations began to dawn on the dawn. The market had obvious positive feedback at the exchange rate and stock market level since the morning, and the asset prices such as the RMB exchange rate and the US stock market were slightly callback after the two sides announced the information. Last Friday, the broader market rose significantly, the Shanghai and Shenzhen 300 index rose 1.69% in the whole week, the gem index rose 1.66%, the textile and garment industry rose 0.39% throughout the week, weaker than the Shanghai and Shenzhen 300 and the gem index, of which the textile manufacturing sector rose 0.18%, and the brand clothing sector rose 0.60%.

Influenced by optimism in Sino US trade negotiations, domestic and foreign cotton futures prices have been linked up. In the futures market, the domestic main cotton contract (CF2005) price was above 13000 yuan / ton, and the settlement price in December 13th was 13355 yuan / ton, up 215 yuan / ton compared with last Friday. In the US cotton futures (ICE2003) aspect, in December 10th, the USDA monthly report reduced the US cotton output, the end inventory and the global ending stock market to boost the market, the US cotton futures price rose obviously, and the December 12th settlement price was 67.17 cents / pound. The price exceeded 2.5 cents per pound last week. The Zhengzhou cotton yarn main contract (CY2005) settlement price in December 13th was 21350 yuan / ton, up 305 yuan / ton compared with the same period last year. From the domestic spot market, the domestic 3128B cotton price index has risen, or nearly 200 yuan / ton, the price index in December 13th was 13020 yuan / ton, and the price index of pure cotton 32 combed yarn decreased slightly, about 40 yuan / ton.

However, some experts have analyzed that the first stage economic and trade agreement text has reached an agreement, but after signing and implementing specific details, there must be a process. In particular, the current cotton and textile situation is still in the doldrums, upstream cotton supply exceeds demand, the downstream cotton yarn sales are not improving, the pressure on cotton inventory is not small, and with the Spring Festival approaching, the number of early holiday enterprises is increasing, and demand is decreasing.