The American Textile Council is holding back on new tactics, with multiple suggestions directed at Chinese textile and apparel companies

The American Textile Council is holding back on new tactics, with multiple suggestions directed at Chinese textile and apparel companies

Recently, Kim Glas, President and CEO of the National Council of Textile Organizations (NCTO), held a speech at the House of Representatives Ways and Means Committee on “How to Support China’s Trade Practices in the Face of ‘Unfair’ American Workers, Business, and the Environment” hearing.

“China’s export-oriented economy is questionable,” Glass said. “These practices come in many forms, ranging from macroeconomic policies that give manufacturers an overall advantage. policies, to industry-specific programs designed to dominate global markets in targeted areas. The U.S. textile industry has long been a victim of China’s export practices.”

Glass further stated: “China’s virtually unlimited and unrealistic pricing power, coupled with its subsidies and lack of enforceable labor and environmental standards, deprives the United States of the benefits of its entire free trade and preferential program structure and undermines the United States. policy objectives.” He said that a maximum pressure plan must be formulated and fully implemented to reconfigure textile and apparel procurement models to avoid severe dependence on China.

With strong trade policies holding China accountable, investment opportunities within the U.S. are ripe to support this critical textile and apparel production chain. There has been a recent trend in the United States to increase production nearshoring, a move that is expected to help solve the immigration crisis and create a win-win situation for American workers and consumers. Once this proposal is adopted, it will certainly be a good thing for the U.S. economy, but it will be another heavy blow to China’s foreign trade companies. The foreign trade situation will definitely be affected by it.

Glass also put forward some major policy suggestions to the committee, which are highly directional and very detrimental to China’s textile and apparel companies. These include: enacting tax incentives and other targeted critical investments to strengthen trade relations and manufacturing in the Latin American region; blocking the expansion of the Generalized System of Preferences, including for textile and apparel products; using trade enforcement in free trade agreements to mitigate attempts to Transshipment plans of unscrupulous importers who illegally avoidtariffs.