China-US trade truce: What textile industry trends are revealed in this "century game"?
The G20 talks between Chinese and American heads of state have attracted worldwide attention, and the preliminary results of the talks are well known: Chinese media reported that the two heads of state reached a consensus to stop imposing new tariffs.
The statement made by the US side is also clear: the original US tariff on $200 billion of Chinese goods will remain at 10% after January 1 next year, instead of 25% previously announced; after the temporary truce in Sino-US trade, the next key is whether the two sides can reach a final agreement within 90 days, if not, the trade war will be returned. It will continue to be upgraded and 10% tariff will be raised.
In addition to the economic and trade consensus, the most important outcome of the talks temporarily curbed the dangerous trend of China and the United States sliding into the new cold war this year. Sino-US trade relations have been affecting China's economy and China's foreign trade exports.
It is known that China is the largest exporter of textiles and apparel in the world. At the same time, textile and apparel exports are also an important part of China's trade exports, while the United States is the largest export market of textiles and apparel in China. According to statistics, China's textile and apparel exports to the United States totalled $38.74 billion in 2017. Among them, $27.73 billion was exported to garments, $11.71 billion was exported to textiles and manufactured goods (including $220 million in yarns, $1.84 billion in fabrics and $9.64 billion in household textiles, industrial textiles and other manufactured goods).
In Jiangsu and Zhejiang regions where 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 alleviated. What impact will it have on foreign trade textile enterprises?
The trade war eased and the multi-empty impact on textile industry < br />.
1. PTA rose, polyester production and sales rose, and textile enterprises had a small stock < br />.
PTA's main force jumped from 5720 last weekend to 6486 today, up 5.05%. Polyester factories are also production and marketing explosion tables, and some factories are closing down and selling reluctantly.
Polyester filament will stop falling and rebound, and the boom in production and sales may drive the downstream textile industry chain. As we all know, polyester and weaving are in an industrial chain, and they are both good and bad. In the second half of this year, the textile market has been a warm water market. Nowadays, a rising voice in the upstream may bring a chain reaction to the downstream. Some weaving enterprises will stock up under the influence of the effect of “ buy-up not buy-down &rdquo uuuuuuuuuu
2. The increase of foreign trade orders in the United States has benefited foreign trade textile enterprises, but it lags behind
.
Because of the constant friction between Sino-US trade before, the most difficult thing for foreign trade textile enterprises is those factories. Firstly, these traditional export factories are highly dependent on the U.S. market. At the same time, they have long relied on cheap foreign trade exports to make profits. It can be said that the U.S. market is the food and clothing parents of these factories.
During the Sino-US trade war, both factories and textile foreign trade enterprises levied taxes. On the one hand, the profits of enterprises were extremely low, even there was a loss. On the other hand, the friction of the trade war reduced the orders of the United States.
Manager Zhang of Suzhou Hongliu Textile Technology Co., Ltd. said that the Sino-US trade war has just eased, and it is impossible to react to the weaving Market immediately. It will definitely take a period of transition. 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 the trade war between China and the United States has eased down. I believe that the trade orders of the United States will gradually increase and the pressure on foreign trade enterprises in the United States will be reduced. However, the process is slow, and the positive impact of this easing is lagging behind.
ThreeOrders from the United States to Southeast Asia may be refluxed
.
A large number of US orders were transferred to Southeast Asia due to the constant friction in the previous Sino-US trade war. But for textile and apparel fabrics, China has a strong voice, now Shengze market in Southeast Asia is second only to Japan and Korea market, but some of the fabric orders we export to Southeast Asia, in fact, the end customers are still European and American markets; now the trade war has been eased, the U.S. order reflux, is also a reasonable thing.
Mr. Zhou of Suzhou Tongke Textile Co., Ltd. said: & ldquo; Our company used to make American orders, 60% of which are American orders. Since this year, with the constant friction between China and the United States in the trade war, we have also been affected. This year's American orders have indeed decreased a lot, but the Sino-US trade friction is only one of them. There are other factors that affect the reduction of orders. The total order volume is not large this year. Some customers have placed underground orders in Southeast Asia. ”
Some European and American customers will ask to send their products directly to their garment factories in Southeast Asia, and Southeast Asian enterprises will come to China to order garment fabrics, & rdquo, said Zhang Xiufeng, manager of Suzhou Gaoyuan Textile Technology Co., Ltd.
As a senior knitting manufacturer in Shengze market, Wujiang Xinchao Knitting Factory 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, and the demand for all kinds of textiles is relatively large. For our factory, the main export products are suede and other knitted products, mainly American standard.
In summary, despite the decline in orders from US orders in China and their transfer to Southeast Asia, Central and South Asia still have to come to China to order fabrics after receiving orders. In this way, Southeast Asia is only a transit station, the United States is our terminal market; for the United States, placing orders in China is more efficient and convenient, after all, China's textile industry chain is more perfect, there are more procurement resources, there are many industry segments and industry opportunities, there are also many professional U.S. trade enterprises. With years of trade experience with the United States, the easing of the trade truce between China and the United States will also bring back some orders.
FourTruce is not a truce < br />.
In addition, even if the two sides can reach an agreement within 90 days, they can not fully ensure that there will be no new trade frictions between China and the United States in the future. In May this year, China and the United States reached a cease-fire agreement on trade wars, but less than 10 days after the agreement was signed, the White House suddenly announced a 25% tariff on $50 billion of Chinese goods, so that domestic netizens satirized Trump's & ldquo; contractual spirit & rdquo; for & ldquo; abandonment spirit & rdquo;.
So it's obviously too optimistic to think that the trade war is over now. A temporary truce may be just a half-time break. For us, even if an agreement can be reached within 90 days, don't imagine that Sino-US trade will be peaceful from now on; if no agreement is reached after 90 days, a tariff levy of 25% will seriously hit textile and foreign trade enterprises exporting to the United States.
Conclusion
The Sino-US trade war is uncertain and long-term. What our textile enterprises need to do now is to prepare for the rainy day. They can open up the market, avoid risks, and increase the added value of their products. After all, no one knows if Talamp will suddenly send a Twitter to be taxed! Nbsp; & nbsp; & nbsp; & nbsp; & nbsp; < br />
