Analysis On The Grounding Of Cotton Ban In Xinjiang

In mid September, the trump government shelved a broad import ban on cotton and tomato products from Xinjiang, China, and announced a smaller ban on products from five specific entities (including cotton processed by Xinjiang Junggar cotton and hemp Co., Ltd.).

Although it is only temporarily shelved, another "boot" may still fall, but it is still a good result for China's export-oriented enterprises, OEM factories, cotton processing enterprises and cotton farmers in Xinjiang (similar to the result that byte hop, Oracle and Wal Mart reached a consensus in principle on the "cloud California" scheme and obtained Trump's "in principle" agreement), at least It has won time for Chinese enterprises to breathe, adjust and respond positively.

Several international cotton traders predict that the trump government will suspend the extensive import ban on cotton and tomato products in Xinjiang, or based on the following two considerations: first, because the scope of the ban is too wide, once the ban is implemented, it is likely to trigger a strong reaction from the Chinese government, and trump's proud political "capital" - the first stage Sino US trade agreement, may face implementation risks; Second, the U.S. genetic Traceability Technology is not very mature or the use cost is high, so it is still unable to avoid the guerrilla tactics of Chinese enterprises such as circuitous and "clip changing". Therefore, the White House may also be "waiting for time, looking for opportunities, and finding entry points". The ban on cotton, yarn and cotton textiles in Xinjiang is only shelved rather than lifted, but it does give China and the United States the opportunity to prepare for war, observe and negotiate.

Although trump and the White House have suspended the extensive import ban on cotton and tomato products in Xinjiang, some clothing brand enterprises, purchasers and retailers in the United States, Europe and even Japan have jumped out one after another (it is difficult to judge whether there is acquiescence or even "support" from the US government) and require Chinese suppliers and processing enterprises to ban the use of cotton containing Xinjiang Flower, yarn, cotton products, including ADI, Nike, H & M, crocodile, Zara and other brands, such as "eat meat from the bowl, curse the mother" and so on. Recently, H & M company announced not only to terminate business contacts with Huafu, but also to carry out investigation on all Chinese suppliers, determined to be the "pawn" mentality of trump and the U.S. government punishing China's Xinjiang cotton products.

Some textile and clothing enterprises in Jiangsu, Zhejiang, Guangdong, Shandong and other coastal areas said that although the U.S. government put aside the import ban on cotton, yarn and cotton products in Xinjiang, it secretly encouraged and attracted brand enterprises and retailers from Europe and the United States and other countries in the name of "individual enterprise" to ask suppliers and processing factories to ban Xinjiang cotton products (not official of the White House) Let the Chinese government and export-oriented enterprises "suffer from the loss". With the U.S. presidential election approaching in November, the U.S. government and U.S. and European companies continue to expand the scope of the ban on Xinjiang cotton, and the probability of stabbing people behind the scenes only rises. Chinese enterprises should be alert to the groundless accusations and attacks of "clowns" at any time, so as to minimize the losses.