Great Progress Of Sino US Economic And Trade Negotiations, 2020 Pure Polyester Yarn Exports Are Expected To Revive

In the past 2019, the export market of pure polyester yarn was extremely extraordinary. Under the influence of frequent Sino US economic and trade negotiations and uncertain events in the year, the overall export volume declined significantly compared with previous years. But by the end of the year, significant progress has been made in the Sino US economic and trade negotiations, to a certain extent, to boost the market, and exports are expected to improve in 2020.

The external environment is bad, and export volume has declined significantly.

In dollar terms, textile exports amounted to $109 billion 260 million in 1-11 months, a slight increase of 0.1%. But in terms of pure polyester yarn, the export volume of domestic pure polyester yarn was 287 thousand and 600 tons in 1-10 months in 2019, which was 8.4% and 7.03% lower than that in 2017 and 2018. Specifically, in the second half of the year, the impact of tariffs on exports has become increasingly evident. Under the combined effect of tariffs and new tariffs that have been imposed earlier, the external demand has weakened significantly. The duration of trade disputes and the uncertainty of tariff increase have a strong impact on the market. The harsh external environment has led to a decrease in the export volume of pure polyester yarn.

Fig. 12015-2019 export volume of domestic textiles in 1-10

Figure 22015-2019 domestic exports of pure polyester yarn in 1-10

By the end of the year, good news is coming.

In mid December, the US and China announced the first stage of the economic and trade agreement. Subsequently, the Customs Tariff Commission of the State Council announced that no tariffs of 10% or 5% would be imposed on some imported goods originating in the United States, which originally planned to impose tariffs on 12 hours and 01 minutes in December 15th. In addition to the above measures, other tariff measures for us and Canada continue to be implemented according to the regulations, and the elimination of tariff commodities in the US and Canada continues.

The United States Trade Representative Office also announced the US statement on the first stage economic and trade agreement between the United States and China. The tariff imposed on the $120 billion commodity added to the US $300 billion A list in September 1st was reduced from 15% to 7.5%, and the tariffs on the 3000 plus US dollar B list originally added in December 15th were temporarily suspended.

Table 1 the impact of trade disputes between the US and China on the textile and garment industry

Tax increase time	Original Tariff Scheme	Latest tariff plan	The amount of textile and clothing products (100 million US dollars)	Accounted for the proportion of textile and clothing exports to the United States (%)
Two thousand and nineteen May 10th 2013	Two thousand and five hundred 100 million plus 25%	Unchanged	One hundred and three	Twenty-two
Two thousand and nineteen September 1st 2013	A tariff of $15% is added to the $120 billion A list of $300 billion.	From 15% to 7.5%	Almost all: knitted or crocheted garments and accessories are US $17 billion 600 million; non knitted or crocheted garments and accessories are US $14 billion 500 million; footwear, leggings and similar items and their components are US $12 billion 100 million.	Ninety-seven
Originally scheduled for December 15, 2019	Three thousand Million B list	suspend

Looking forward to 2020, exports are expected to recover.

As one of China's main export industries, the export of textiles and clothing has reached the threshold of 300 billion US dollars. For domestic textile enterprises, the reduction of orders and pessimism brought about by the recent trade disputes over the past year will be swept away by the positive effects of trade disputes. In the short term, industry demand is expected to gradually recover, and the latter export trend is expected to be warmer than in the early part of the year. In the early stage, some factories exported to domestic market because of the severe export situation, and the competition in the domestic market is also expected to be eased. Therefore, in the context of the gradual settlement of trade disputes, the late pure polyester yarn export orders or will usher in a substantive turning point.