India'S Textile Industry Will Be Hit! China Announces That The "97% Zero Tariff" Of The Goods Sold By Mencius To China.

As the second largest textile exporter in the world (second only to China), Bangladesh's textile industry accounts for more than 70% of its total exports. However, because of geographical location and climatic conditions, Bangladesh and India compete in the textile industry.

Recently, our country has sent a piece of good news to Bangladesh. According to the latest announcement issued by the relevant departments in China, since July 1, 2020, 97% of the taxable products exported to Bangladesh will enjoy "zero fee" treatment.

Data show that in the past 1-9 months, China's total imports from Bangladesh amounted to US $790 million, up 7.2% over the same period last year. Textiles are also the main products of the country's exports to China. In fiscal year 2017-18, the country exported $233 million worth of clothing to China. Besides China, the European Union, the United States and Canada are also important export markets of the country. As textile orders continue to grow, the country is also very optimistic about its export prospects. Bangladesh has set a target of $50 billion in clothing exports in 2021.

It is worth mentioning that because of the transformation and upgrading of manufacturing industry in recent years, many clothing brands seek to open factories overseas to achieve cost effectiveness. This means that after the implementation of the above preferential measures, Bangladesh will attract more Chinese enterprises to invest and build factories there.

Data show that in 2019 1-9, Chinese enterprises invested 270 million yuan in Bangladesh, an increase of 123.3% over the same period last year. At the end of last year, Xinhua reported that Bangladesh commerce minister said that China is the largest source of foreign investment in Bangladesh and welcomes more Chinese investors to invest in Bangladesh.

However, this time, China's olive branch, which extends its cooperation to monk, is an important competitor for India. It is reported that the textile industry is an important industry in India's manufacturing industry. In fiscal year 2018, exports of textiles and clothing in India accounted for 12%. However, due to the impact of the epidemic, India Garment Manufacturers Association (CMAI) said in mid 4, if there is no government support, the textile industry may lay off 10 million people during the year.

What is even more surprising is that India's first reaction is not to seek expanded cooperation but to investigate textile materials from other countries. According to the announcement of China trade relief information network, in May 21, 2020, the India Ministry of Commerce and industry announced that it would initiate anti-dumping investigations on polyester yarn products originating from China, Indonesia, Nepal and Vietnam.

Data show that textiles and raw materials are the top three categories of products exported to China by India. Now, our country has reached a cooperation with Bangladesh. If India continues to make relevant moves, it is afraid that it will lose its advantage completely in the competition with Bangladesh.