Foreign Trade Enterprises Under The Shadow Of Order Cancellation: We Are Losing The American Market

This year, affected by the global epidemic of new crown pneumonia, not only the textile industry, but almost all the export industries have been hit hard. With the passage of time, the economy around the world has been recovering, and foreign trade has finally shown signs of recovery. However, while the warning of the epidemic situation has not been lifted and the foreign trade has been warming up, the alarm of Sino US relations has been sounding more and more frequently. Foreign trade enterprises, which have only slightly improved, are facing serious obstacles.

The new sanctions announced by the United States involve China

On March 3 local time, the United States announced sanctions against 11 foreign companies and 3 individuals, accusing them of violating US sanctions against Iran and helping Iran export oil, petroleum products and petrochemical products, including six Chinese companies (five registered in Hong Kong and one in the mainland) and two Chinese individuals.

According to a statement issued by the U.S. Treasury Department, the U.S. Treasury has listed six companies from Iran, the United Arab Emirates and China on the list of sanctioned entities because they provide transportation and sales channels for Iranian petrochemical products and support the Hong Kong based triliance Petrochemical Co. Ltd., which has been previously sanctioned.

On the same day, the US State Department also imposed sanctions on five companies and three individuals from Iran, the United Arab Emirates and China involved in Iran's oil and petrochemical industry related transactions.

According to the information of the sanctioned entities and individuals released by the U.S. Treasury Department, the list includes five companies registered in Hong Kong, one company headquartered in Shanghai and two Chinese individuals.

According to the report, the trump administration's move will freeze all U.S. assets of entities and individuals listed in the sanctions blacklist and prohibit Americans from doing business with them.

On the ground of its connection with Iran, the United States has repeatedly hacked Chinese companies. In May, the United States announced sanctions against a logistics company based in Shanghai, China, which is said to have cooperated with Iran Mahan airlines, which is blacklisted by the United States.

The crackdown on textiles has already begun. We are losing the American market

Recently, Sino US relations have deteriorated rapidly. Although the trade war between China and the United States has slowed down due to the epidemic situation in recent years, in fact, the United States has already begun to crack down on Chinese textiles since this year.

According to statistics, from January to June 2020, the United States imported 38.616 billion US dollars of textiles and clothing, a year-on-year decrease of 27.82%. Among them, imports from China totaled 9.603 billion US dollars, a year-on-year decrease of 43.17%, Vietnam's imports of US $6.054 billion, a year-on-year decrease of 11.13%, and imports from India of US $3.072 billion, a year-on-year decrease of 27.21%. Compared with Vietnam and India, China's textile and garment exports to the United States are significantly reduced by a large margin under the overall downturn of Global trade. At the same time, a series of recent events are still not optimistic, textile people need to be vigilant!

1. Risk of "made in China"

Recently, the air trade circle of friends has received the following notice:

According to the U.S. customs border requirements, from now on, all the goods sent to the United States through all channels, outer boxes and products should be labeled with "made in China", otherwise, the local import is not allowed!

It is a normal thing to check the certificate of origin. However, if it is related to the recent tense situation between China and the United States, textile workers will have to worry about it. If trump "breaks out", some very conventional textiles will become the target of the other party, facing the risk of return, confiscation or fine.

2. Ban Xinjiang cotton

Recently, the U.S. government has asked American and non-U.S. people to gradually close their transactions with entities directly or indirectly holding 50% or more of the interests of Xinjiang production and Construction Corps before September 30, 2020; if they can not close the relevant transactions before September 30, they need to seek guidance from the U.S. Department of Finance. In order to reduce the trouble and avoid the risk, some U.S. customers clearly put forward orders to ban Xinjiang cotton.

Xinjiang is the main cotton producing area in China. In 2019, Xinjiang's cotton output will reach 5.02 million tons, accounting for 85% of China's total cotton output. It can be said that most of China's cotton textile products are behind the figure of Xinjiang cotton.

As the most basic and common textile natural fiber, cotton has an irreplaceable position in textile production. It can be predicted that after the United States banned Xinjiang cotton, textile foreign trade enterprises will inevitably bear greater pressure.

The dispute is becoming more and more serious, foreign trade textile people: alert the United States to make trouble again

At the present stage, the Sino US relations are complicated and unpredictable, which brings great uncertainty to China's textile export. However, on the other hand, at least at this stage, China's textiles are irreplaceable.

Recently, the office of the U.S. trade representative announced that the tariff exemption period for some goods, including masks, will be extended by four months until the end of 2020. In fact, it is easy to understand, because the epidemic situation in the United States is getting worse and worse, products like masks belong to the seller's market, so there will be no tariff restrictions on imports.

But on the other hand, due to China's "world factory" attribute, Southeast Asia's textile industry chain and technology, which are catching up, are difficult to catch up with China in a short period of time. However, China's leading position will not be shaken in the short term. According to the statistics of Vietnam's General Administration of customs, Vietnam's total imports of textile, clothing, leather and footwear raw and auxiliary materials in the first seven months of 2020 will be 12.02 billion US dollars, Imports from China accounted for 49%. Although Vietnam's total imports of leather and accessories accounted for about 58% of China's total imports, it was still the largest in China's import of raw materials and accessories. But at the same time, the import of textile clothing and leather footwear raw and auxiliary materials decreased by 16% year on year, which was the largest decline in import products. Therefore, in the short term, Vietnam still depends on China's textile industry chain, but Vietnamese have clearly seen the problem.

Due to the outbreak of the epidemic and the approaching of the general election, the recent foreign trade, especially the "single moth" in the U.S. market, trump played the so-called "China card" in order to get rid of the "pot" of ineffective anti epidemic. However, with the gradual recovery of foreign trade market, the business that should be done still needs to be done. Textile workers can only consider all kinds of risks as far as possible in the process of doing business and avoid them prudently.