This year, affected by the global COVID-19 pandemic, not only the textile industry, but almost all export industries have been hit hard. As time goes by, economies around the world have gradually recovered, and foreign trade has finally shown signs of recovery. However, while the epidemic alarm has not been lifted and foreign trade is picking up, the alarm on Sino-US relations is sounding more and more frequently. Foreign trade companies that have only improved slightly are facing serious obstacles.
The United States announced new sanctions, involving China
On the 3rd local time, the United States announced new sanctions on 11 Sanctions were imposed on foreign companies and three individuals, accusing them of violating U.S. sanctions against Iran and helping Iran export oil, petroleum products and petrochemical products, involving six Chinese companies (five registered in Hong Kong and one mainland company) and 2 Chinese individuals.
According to a statement issued by the U.S. Department of the Treasury, the U.S. Department of the Treasury has added 6 companies from Iran, the United Arab Emirates, and China to the list of sanctioned entities on the grounds that these companies are Iranian It provides transportation and sales channels for petrochemical products and provides support to Triliance Petrochemical Co. Ltd (headquartered in Hong Kong), which has been previously sanctioned.
On the same day, the U.S. State Department also investigated five companies from Iran, the United Arab Emirates, and China involved in transactions related to Iran’s oil and petrochemical industry. company and three individuals.
According to the sanctioned entities and personal information released by the U.S. Department of the Treasury, the list includes 5 companies registered in Hong Kong, China, 1 company headquartered in Shanghai, and 2 Chinese individuals.
According to reports, the Trump administration’s move will freeze all U.S. assets of entities and individuals included in the sanctions blacklist and prohibit Americans from doing business with them.
The United States has repeatedly targeted Chinese companies on the grounds of its connection with Iran. In May this year, the United States announced sanctions on a logistics company based in Shanghai, China, which was allegedly cooperating with Iran’s Mahan Air, which was blacklisted by the United States.
The suppression of textiles has already begun, and we are losing the U.S. market
Sino-U.S. relations have been developing rapidly in recent days. Although the Sino-US trade war has slowed down in recent years due to the epidemic, in fact, the US’s suppression of Chinese textiles has already begun this year.
According to statistics, from January to June 2020, the United States imported a total of US$38.616 billion in textiles and clothing, a year-on-year decrease of 27.82%. Among them, imports from China totaled US$9.603 billion, a year-on-year decrease of 43.17%, imports from Vietnam were US$6.054 billion, a year-on-year decrease of 11.13%, and imports from India were US$3.072 billion, a year-on-year decrease of 27.21%. In the context of the overall downturn in global trade, the decrease in textile and apparel exports from China to the United States is significantly higher than that of Vietnam and India. At the same time, the recent series of events are still not optimistic, and textile people need to be vigilant!
1. “Made in China” saves the risk of returns
A few days ago, the aviation trade circle of friends received the following notice:
In accordance with the U.S. customs border requirements, goods sent to the United States through all channels from now on, the outer box And the products must be labeled “Made in China”, otherwise the local import is not allowed!
Checking the certificate of origin is originally a relatively normal thing, but if it is linked to the recent tensions between China and the United States, This has to make the textile people nervous. If the guarantee is not guaranteed, when Trump “attacks” one day, some very conventional textiles will become the target of the other party and face risks such as returns, confiscation or fines.
2. Ban Xinjiang cotton
Recently, the U.S. government requested that the U.S. Persons and non-U.S. persons must gradually close transactions with entities that directly or indirectly own 50% or more of the Xinjiang Production and Construction Corps before September 30, 2020; if relevant transactions cannot be closed before September 30, they need to report to U.S. Treasury seeks guidance. In order to reduce trouble and avoid risks, some U.S. customers have explicitly proposed banning Xinjiang cotton in their orders.
Xinjiang is my country’s main cotton-producing region. In 2019, Xinjiang’s cotton output reached 5.002 million tons, accounting for 85% of my country’s overall cotton output. It can be said that most of China’s cotton spinning products are made from Xinjiang cotton.
As the most basic and common natural textile fiber, cotton has an irreplaceable position in textile production. It is foreseeable that after the United States bans Xinjiang cotton, textile foreign trade companies will inevitably Understand greater pressure.
The dispute is intensifying, foreign trade textile people: be wary of another attack by the United States
The current stage of Sino-US relations It is confusing and difficult to predict, which has brought great uncertainty to China’s textile exports. But on the other hand, at least at this stage, China’s textiles are still irreplaceable.
Recently, the Office of the United States Trade Representative issued an announcement stating that for some products, including masks, the tariff exemption period will be extended for four months until the end of 2020. In fact, it is easy to understand, because the epidemic in the United States is getting worse, and products like masks are…��A seller’s market, so tariffs will not be used to restrict imports.
But on the other hand, due to China’s “world factory” attributes, it is difficult for the Southeast Asian textile industry, which is catching up, to catch up with China in terms of industrial chain, technology, etc. in the short term. However, China’s leading position will not be shaken in the short term. According to statistics from the General Administration of Customs of Vietnam, Vietnam’s total imports of textile, clothing and leather footwear raw and auxiliary materials in the first seven months of 2020 were US$12.02 billion, with imports from China accounting for 49%. China is the largest import market for raw materials and auxiliary materials in Vietnam’s textile, clothing and leather footwear industry. Although it fell by 12% year-on-year, it still accounted for 49% of the total imports of such products, amounting to approximately US$5.88 billion. But at the same time, imports of raw and auxiliary materials for textiles, clothing and leather footwear fell by 16% year-on-year, making them the imported products with the largest decline. Therefore, in the short term, Vietnam will still have to rely on China’s textile industry chain, but the Vietnamese have obviously seen the problem.
Due to the fermentation of the epidemic and the approach of the general election, recent foreign trade, especially the U.S. market, has continued to suffer from “moths”. Trump is desperately trying to get rid of the “pot” of his ineffective fight against the epidemic. Playing the so-called “China card”. However, as the foreign trade market gradually picks up, business that should be done must still be done. Textile people can only consider various risks as much as possible in the process of doing business and carefully avoid them. </p
