Chinese Textile Enterprises Face Challenges In Trade Friction

In June 15th, the US government announced that it would levy a tariff of 25% on imports of about $50 billion from China. In June 16th, the Customs Tariff Commission of the State Council decided to impose a 25% tariff on 659 imported commodities originating in the United States for about 50 billion dollars. In June 18th, US President Trump announced that it would levy a 10% tariff on US $200 billion in Chinese products. He also said that if China continues to fight back, the United States will impose additional tariffs on additional 200 billion US dollars in Chinese goods.

The United States has taken the lead and China is tough. Both sides have come to me to let trade frictions escalate. From an objective point of view, Sino US trade friction has affected many industries in different degrees. In the list of China, tariffs added in July 6th include combs. cotton And cotton lint. Some analysts believe that the possibility of entering the list of textiles and clothing is rising. Auggie Tantillo, the president and chief executive of the National Textile Association Association, has previously said, "the US textile industry urges the Trump administration to include textiles and clothing products in the 301 tariff measures aimed at China."

The threat of the United States is likely to become a reality. Logically speaking, as the downstream industry of China's cotton industry, China's textile industry is facing major challenges from Sino US trade friction. Usually, the prices of raw materials in the upstream industry will rise, and the prices of related products in the downstream industries will also rise. Some Chinese enterprises are worried that after the tariff increases, cotton prices will rise, the price of some textile products in China may increase, and the advantage of commodity prices will be further weakened, which will lead to the weakening of prices. market Loss of share. At the same time, foreign textile products will take the opportunity to enter China, bringing greater competition pressure to China's textile enterprises.

For enterprises, challenges and opportunities are at the same time. Some analysts believe that although imported textile products will have a certain impact on similar products in China, in recent years, powerful Chinese textile enterprises have been working hard to continuously improve their product advantages. In the fierce market competition, in addition to the price war, a considerable number of Chinese enterprises have made great progress in product quality, brand awareness, advertising design, marketing management and so on. In the competition with foreign enterprises, Chinese textile enterprises that are following the trend of the times, fearless and good at changing are still achieving good results. In recent years, many Chinese enterprises have invested in factories such as Vietnam and other Southeast Asian countries. Even if the United States levies taxes on imported Chinese textiles, the impact of Taxation on such enterprises is limited.

Data show that in 2018 1-5 months, China's textile exports amounted to 7 billion -112 billion dollars, and its dependence on the US market was limited. Even if it lost the United States. market Chinese textile enterprises can also choose other textile export places such as Southeast Asia and Africa.

Both China and the United States are big powers in the world. Any economic policy of the two governments may take the lead. The complexity, arduous and unpredictability of Sino US trade friction sometimes exceed people's imagination. In this era of economic globalization, China's textile enterprises must take seriously the changes in the situation, constantly improve their strength, and actively respond to challenges, so that they will be invincible in the market.