"dinner, china and the united states table," the g20 summit between the two heads of state, the world attention, and the preliminary results of the meeting you know: the chinese media reported that the two heads of state agreed to stop imposing new tariffs.
the us statement was also clear: the us tariff on $200bn of chinese goods will remain at 10 per cent after january 1, instead of 25 per cent as previously announced. after a temporary truce, the key is whether the two sides can reach a final agreement within 90 days. if not, the trade war will continue to escalate and the 10% tariff will be raised.
the biggest achievement of the talks was not only the economic and trade consensus, but also, more importantly, a temporary halt to the dangerous slide this year into a new cold war between china and the united states, whose trade relationship has affected china's economy and its exports.
it is understood that china is the world's largest textile and apparel exporters, at the same time, textile and apparel exports are an important part of china's trade exports, and the united states is china's largest textile and apparel export market. according to statistics, china's textile and apparel exports to the united states totaled 38.74 billion us dollars in 2017. of this amount, $27.03 billion was exported to clothing, $11.71 billion was exported to textiles and manufactured goods (including $220 million in yarn, $1.84 billion in fabric, and $9.64 billion in household textiles, industrial textiles and other manufactured goods).
in jiangsu and zhejiang provinces, where the textile industry is concentrated, many textile enterprises have frequent trade contacts with the united states. now the trade war between china and the united states has been eased. what impact will it have on foreign-trade textile enterprises?
trade wars ease the long - and - short impact on the textile industry
1.pta increased, polyester production and marketing increased, textile enterprises a small amount of stock
pta main force jumped from 5720 over the weekend to 6486 today, up 5.05%. polyester factory is also production and marketing extraordinary, some manufacturers are reluctant to sell.
polyester filament stop falling rebound, production and marketing boom or will drive the downstream textile industry chain. as is known to all, polyester and weaving is an industrial chain, a glory all damage! the textile market in the second half of this year can be said to have been as warm as the market. nowadays, a rising sound in the upstream may bring a chain reaction to the downstream. affected by the effect of "buy up or not buy down", some weaving enterprises will stock up.
2. the increase of foreign trade orders in the united states is good for foreign trade textile enterprises, but it lags behind
due to the continuous friction between china and the united states in the past trade, the most difficult thing for foreign trade textile enterprises is those factories. first of all, these traditional export factories are highly dependent on the american market, and at the same time, they rely on the cheap advantages of foreign trade to make profits for a long time. it can be said that the american market is the parents of these factories.
during the trade war between china and the united states, no matter factories or textile and foreign trade enterprises, on the one hand, due to the tax increase, the profits of the enterprises are particularly low, or even a loss phenomenon; friction over a trade war, on the other hand, has reduced american orders.
mr. zhang, the manager of suzhou hongliu textile technology co., said the trade war between china and the united states had just eased, and it was impossible to immediately respond to the weaving market. at present, the situation is not easy to say, although the upstream has risen, but the weaving market is not improving, so we still need to be cautious.
now that the trade war between china and the united states has eased, i believe that the trade orders of the united states will also gradually increase and the pressure on foreign trade enterprises in the united states will decrease. however, this process is slow, and the positive impact of the easing is lagging behind.
orders from the united states to southeast asia may flow back
as a result of the previous sino-us trade war friction, a large number of us orders to southeast asia. however, china has a strong voice in textile and garment fabrics. now, the southeast asian orders in shengze market account for only second to those in japan and south korea. now that the trade war has eased, it makes sense that american orders have returned.
suzhou tongke textile co., ltd. zhou said: "our company used to do the order, the order of 60% of all parts of the united states, since this year as the sino-us trade friction, we have also been some impact, this year's us orders actually reduce a lot, but sino-us trade friction is one of the factors that influence the orders and some other factors, this year the overall order quantity is not much, part of the customers in southeast asia and other underground.
"some european and american customers will ask to send their products directly to the garment factories they have built in southeast asia, and southeast asian companies will still come to china to place orders for clothing fabrics," said zhang xiufeng, manager of suzhou gaoyuan textile technology co., ltd.
wujiang xinchao knitting factory, as a senior knitting factory in shengze market, has a wide distribution of foreign trade. manager wu, who is in charge of the foreign trade market, said that the united states is a big market with a large demand for all kinds of textiles. for our factory, the export products are mainly suede and other knitting products. american standard.
in conclusion, although the number of orders placed by the united states in china has decreased and moved to southeast asia, central and south asia will still come to china to order fabrics after receiving the orders. in this way, southeast asia is only a transit station, and the united states is our terminal market. orders for us, in china is also more efficient, convenient, after all, china's textile industry chain is more perfect, more purchasing resources, also there are so many opportunities of segmentation and industry also has a lot of professional trade company of the united states, have to the united states trade experience for many years, so the sino-us trade truce temper also can make the back part of the order.
a truce is not a truce
moreover, even if the two sides can reach an agreement within 90 days, there is no guarantee that there will not be new trade frictions between the two countries in the future. in may this year, china and the united states once reached a ceasefire agreement on trade war, but less than 10 days before the signing of the agreement, the white house suddenly announced a 25 percent tariff on $50 billion of chinese goods, so that domestic netizens mocked trump's "spirit of contract" as "the spirit of abandoning the contract".
so it is too optimistic to think that the trade war is over. the truce may be just a break. for us, even if an agreement can be reached within 90 days, there is no illusion that sino-us trade will ever be peaceful again. if no agreement is reached after 90 days, the 25% tariff will hit the textile enterprises exporting to the united states seriously.