Textile export quotas to the United States expire at the end of the year, and exports to the United States will have limited growth next year

Textile export quotas to the United States expire at the end of the year, and exports to the United States will have limited growth next year

“By the end of this year, the three-year Sino-US Memorandum of Understanding on Textile and Clothing Trade will have completed its historical mission. Specifically speaking of the 3478 types of products exported by our company (category 347/348, cotton pants), we will not It is also affected by quota restrictions, but this does not mean that the United States will open its market without any restrictions.” Liu Zhijie of Shandong Qingdao Haiwei Garment Co., Ltd. told reporters at the third phase of the 104th Canton Fair, “Currently, there are 17 or 18 countries and regions require the United States to start real-time monitoring of Chinese textiles next year, similar to the current management methods of the United States for Vietnamese textile exports to the U.S. market. Once the quantity and price get out of control, anti-dumping investigations or countervailing investigation procedures can be immediately launched.”

It is reported that in a letter recently released by the National Association of Textile Groups, a trade organization, U.S. presidential candidate Obama vowed to address the dissatisfaction of the U.S. textile industry. In the letter, Obama also promised to set import quotas for many types of Chinese textiles by the end of this year. After expiration, China’s textile exports to the United States must be closely monitored.

Liu Jisheng of Shandong Qingdao Saint Peak Fashion Co., Ltd. believes that even if my country’s textile export quotas to the United States are canceled next year, there will not be a blowout of textile exports to the U.S. market. A growth of 20% or 30% will be enough.

Many textile exhibitors at the Canton Fair reported that there was a significant decrease in buyers attending the fair this year, especially those from Europe and the United States. The reporter found that, except for the brand exhibition area where there were many traveling merchants, the flow of merchants and merchants on other passages away from the entrance and non-brand exhibition areas was sparse. Therefore, some exhibitors predicted that firstly, there are not many American merchants coming, and secondly, when they come, they mainly wait and see. Since there are many uncertainties and importers’ inventories need to be digested, even if the quota is canceled next year, my country’s textile exports to the United States will not increase much.

The U.S. Department of Commerce recently announced that due to rising unemployment and other factors, U.S. retail sales of goods fell sharply by 1.2% in September, the highest decline in three years and much higher than the 0.7% decline previously expected by economists. Investors are worried that the decline in consumer spending, which accounts for nearly two-thirds of U.S. gross domestic product, will lead to an inevitable recession or that the U.S. economy has already fallen into recession.

Katherine Lee, President of Nexus Corporation of the United States, believes that due to the impact of the financial crisis, American consumers are gradually changing their consumption behavior, reducing the demand for many luxury goods and unnecessary consumer goods, and beginning to save money.

Americans have changed their lavish spending habits and started to tighten their wallets. Yin Heming, manager of Aiyimei Import and Export Company, is also having a tight time this year. The company had originally been taking the high-end route of exporting to the European, American and Japanese markets. Cashmere women’s clothing and men’s clothing were its main products. However, the “high-end” price factor of high-end products and the economic recession in Europe, the United States and Japan have greatly affected the sales of its products. So far, Aiyimei’s exports to the US market have dropped by 70% to 80%. It could originally export 40,000 to 50,000 sets of suits per year, but this year only 20,000 sets were exported. It can be said that the order volume of each of Aiyimei’s major customers has decreased by more than 60% this year. Moreover, the company has already suffered from the negative impact of the debt or bankruptcy of an importer in the United States. The 20,000 pieces of women’s clothing that have been made have been backlogged in the warehouse because the other party did not pick up the goods. Yin Heming is worried that although Aiyimei is not the one who breached the contract, the subsequent losses may have to be borne by Aiyimei.

Catherine Li analyzed that due to the increase in China’s labor costs and the rise in the RMB exchange rate, China’s low value-added textiles have no advantage over other countries and regions. The growth rate of textile exports to the United States will not surge next year.

Liu Zhijie also sees that my country’s labor costs are already higher than those in neighboring countries and regions. Labor wages in Vietnam are 200 to 300 yuan, while in my country they are more than 1,000 yuan. Many of my country’s low-value-added textile exports no longer have many advantages. This We can get a glimpse of this year’s textile export situation. According to China Customs statistics, from January to September, my country’s textile and apparel exports totaled US$136.94 billion, a year-on-year increase of 8.1%, and the growth rate decreased by 11.9 percentage points compared with the same period last year. Among them, exports to the United States were US$19.24 billion, a year-on-year increase of 1.4%, and the growth rate dropped by 28 percentage points year-on-year. Yin Heming said that the amount of my country’s textile exports seems to be growing this year, but due to the 7% appreciation of the RMB against the US dollar this year, coupled with the increase in export prices, the export volume has actually declined significantly.

“Exports are under great pressure this year, and the situation next year will be even less optimistic!” Yin Heming said that many small businesses around him have closed down. By November, many small businesses will have no orders to fill; large companies will definitely be operating at a loss this year. . Although recruiting workers is not a problem now, workers’ wages are rigid and cannot be reduced. More businesses will close in the first half of next year.

Domestic and foreign factors that led to the decline in my country’s textile exports this year will still exist next year. Therefore, Yinheming is now very cautious about large and long-term orders from the United States.

Catherine believes that next year, quotas for my country’s textile exports to the US market will no longer be an issue. The problem lies in how my country’s export companies adjust their product structure, improve product quality and enhance brand value. However, because the crisis that the United States currently needs to deal with is too great,However, the cancellation of China’s textile quotas for export to the United States next year has not attracted the attention of the American people.

According to analysis from the Textile Chamber of Commerce, my country’s Ministry of Commerce will no longer implement quantity and license management of textile exports to the United States and license management of textile exports to Europe from January 1, 2019. At that time, the United States will take close monitoring measures, which may be much more stringent than the bilateral monitoring measures on textile trade between China and Europe.

Of course, the elimination of quota restrictions will bring both opportunities and challenges to textile export companies. The lifting of quota restrictions does not mean that textile trade will be completely liberalized, and will also be subject to some special guarantee clauses. In addition to special safeguard clauses, other trade protection measures cannot be ignored. Such as anti-dumping measures, countervailing measures and safeguard measures. People from the Chamber of Commerce reminded that today’s textile companies, in addition to hoping that the Ministry of Commerce will further strengthen dialogue and communication with relevant countries and create a good external environment for the export of my country’s textile companies, the companies themselves must also actively change their concepts and adapt to the new situation next year as soon as possible; there are We will arrange the export plan for 2019 in order and focus on improving the quality and added value of our products.

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