The “blowout” of textile, footwear and clothing exports may be difficult to repeat
It is less than two months away from December 31, 2019. At the end of that day, the United States will cancel its three-year quota restrictions on Chinese textiles. my country’s textile exports to the United States will return to the “no quota era” from January 1 next year. “. The industry in Quanzhou feels this is a good thing, but it is expected that the export “blowout” will be difficult to reproduce, and it is also considering in advance that it may face other technical barriers and patent barriers in international trade in the future.
Enterprises reported: There will be little impact in the short term
Zhang Rui, general manager of Hongruixing (Jinjiang) Garment Co., Ltd., believes that the cancellation of textile export quotas is a good thing for Quanzhou’s foreign trade enterprises. There will be some impact, mainly on price. He said: “The quota restrictions on textiles exported to the United States are relatively strict. After they are relaxed, some high value-added garments in Quanzhou will have a quantitative increase.”
Zhang Quanxi, chairman of Fujian Beyond Group, said, “It is different from the past.” There will be a big difference.” In his view, the recent financial crisis has weakened the United States’ ability to pay, and this is the key to the problem. “Even if we make efforts in technological innovation and other aspects, it will be difficult to change the downward trend of exports.” He believes that the cancellation of textile quotas for export to the United States will have little impact on the overall export trade.
The export manager of a textile company in Quanzhou said that currently there are quota restrictions on textile and clothing exports to Europe and the United States. Generally, only some large companies can obtain quotas for textiles exported to the United States. He said: “The quotas of some large enterprises cannot be used up, so some agencies buy unused quotas from large textile enterprises and then resell them to some small textile enterprises.” According to him, the quota certificates are currently maintained. At a price level of around $10*.
The reporter learned from a number of Quanzhou textile companies participating in the Canton Fair that their biggest worry currently is the lack of orders, claiming that “the current quota is not a problem, the important thing is that the company’s goods cannot be sold.”
Industry expectations: The export “blowout” is difficult to repeat
In this upcoming “quota-free era”, exports will be difficult due to changes in exchange rates, raw material and labor costs, as well as international demand and other factors. Among the relevant Quanzhou companies, there has been neither the fervent call three years ago, nor any of them inspired by this ambition.
According to statistics from the website of the Ministry of Commerce of China, in the first half of the year, the average utilization rate of China’s quotas for 21 categories of restricted textiles exported to the United States was less than 20%. “This shows that the cancellation of quotas this time is unlikely to repeat the ‘blowout’ exports in 2005, and will not have a big impact on enterprises.” Wang Ying, secretary-general of the China Chamber of Commerce for Import and Export of Light Industry and Crafts, said that in the restricted post-quota era, enterprises are facing Greater risks in the era of quotas.
Li Tianfu, deputy general manager of Fujian Malette Knitting Garment Co., Ltd., said: “After exploring and experiencing the international market in recent years, Quanzhou enterprises have slowly turned to a high value-added growth mode. Only growth in quantity, Without qualitative improvement, it is destined to not go far.” He said that the four-year tug-of-war in textile trade between China and the United States is about to end, and textile and garment enterprises that have experienced many hurdles are gradually becoming mature.
“After all, with the deepening of economic integration, as long as enterprises have real international competitiveness and resource integration capabilities, they can find their ideal position on the international stage.” The relevant person in charge of the Quanzhou Textile and Garment Chamber of Commerce said, On the one hand, the financial crisis has had a huge impact on the purchasing power of Europe and the United States. A buyer who originally bought 10 shirts may now only buy 8, and the demand has decreased. On the other hand, many export-oriented clothing companies in Quanzhou have expanded their business in recent years. Other international markets outside Europe and the United States, and began to explore the domestic market, transferring part of the productivity. “Therefore, it is not easy for textile exports to Europe and the United States to grow steadily after the quotas are cancelled.” He said.
Far and near worries: new restrictions may be set
Industry insiders pointed out that the Quanzhou textile and garment industry must take active measures to deal with the new trade environment. Fujian Green Group is one of the largest independent exporters in Quanzhou. Zhao Jianhe, chairman of the company, said: “Although the export situation of enterprises in the first three quarters of this year is not significantly different from the same period last year, we cannot take it lightly.”
According to analysis, Some companies simply believe that if Europe and the United States cancel textile quotas, Chinese clothing will be able to sell smoothly to the European and American markets. In fact, this is a wrong judgment.
On September 26, 75 members of the U.S. House of Representatives jointly sent a letter to the President of the United States, hoping that the U.S. government would implement monitoring measures for textile and apparel products imported from China next year after the special restrictions are lifted. In early October, textile and apparel organizations from 17 countries including Cambodia, Mexico, the Philippines, and South Africa also collectively sent a letter to leaders of the U.S. Congress, urging the Bush administration to continue the trade remedy investigation into China’s textile exports next year on the grounds that China’s share of the U.S. apparel market Rapid growth has resulted in the loss of hundreds of thousands of jobs in other developing and less developed countries. Textile industry analyst Li Jun said that even if Europe and the United States no longer impose restrictions on Chinese textiles in 2019, various trade protection measures such as various non-tariff barriers, anti-dumping and regional trade alliance systems in Western developed countries and some developing countries will It is still hindering the normal development and export of my country’s textile industry.
Li Tianfu believes that in addition to trade barriers, new market dynamics also have an impact on my country’s textile exports. “In the U.S. market, Mexico is the number one competitor for Chinese clothing.”���Canada is China’s top textile competitor. “He said that Quanzhou’s companies rarely regard developing countries such as India, Turkey, Brazil, and Mexico, which have had more frictions with my country’s textile trade in recent years, as their main export markets. These countries have large populations, and their general consumption levels are not very high. , it is a huge market for Quanzhou export companies, which mainly focus on the mid- to low-end.
Experts analyze that my country’s textile exports may once again cause a chaotic situation of increased volume and reduced prices in 2019. Enterprises should pay attention to structural adjustments. Rather than holding on to export quantity, low-price exports are short-term behavior for enterprises and industries.
Experts suggest: Seize the period of strategic opportunities
Experts suggest that Quanzhou enterprises should seize strategic opportunities New opportunities for transfer, strengthen the added value of products, and at the same time change the original trade methods accordingly, expand the domestic market, cultivate both internal and external issues, and cope with the current new situation of textile and apparel exports.
In order to avoid the US textile quota setting for China However, after realizing that it is very dangerous to put all the eggs in the same basket, many companies began to enter the domestic market, adjust production in a timely manner, and transfer some parts of their products to Production links will be transferred to countries or regions without restrictions. Textile exports to the United States will return to the “no-quota era” next year
The industry expects that the export “blowout” will be difficult to repeat
Tell reporters: “Awareness After realizing the problems caused by the simplification of textile exports, companies began to build domestic own brands and carry out terminal construction to allow foreign trade and domestic trade to fly side by side. ”
The reporter learned that many exhibitors at this Canton Fair said that the time may have come to switch exports to domestic sales. Jiang Zengwei, Vice Minister of the Ministry of Commerce, also pointed out that China’s domestic market is vast and he hopes that companies will explore foreign markets at the same time. We also study domestic sales and learn to “walk on two legs.” Li Tianfu believes that if some of our companies have spare funds, they can increase the acquisition of companies with R&D capabilities and proprietary technologies. “This can shorten the time for our technological innovation and process to speed up the pace of our corporate development. ” he said. AAVBJYTUJGHNH
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