China'S Textile Exports To The US Are Falling.

December 29th (reporter), referring to the p Pacific Partnership Agreement (TPP) signed between the United States and the 11 countries, Hong Kong businessmen react to polarization.

Hong Kong businessmen who have already set up factories in Vietnam and other TPP member states are delighted that tariffs on domestic products exported to the United States and Japan will be greatly reduced or revoked, which will increase the competitiveness of the products. However, the Hong Kong businessmen who set up factories in the mainland are miserable, unable to receive zero tariff due to China's non member countries, and they are disadvantageous to the export of Hong Kong products.

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The most hit.

Fortunately, TPP will not take effect until the next two years. Hong Kong businessmen may consider setting up factories in their member countries or making efforts to upgrade them to reduce their impact.

Furthermore, the Hong Kong government should strive to sign a free trade agreement with more countries and create a favorable business environment for Hong Kong businessmen.

Photo: economists say that although China is still the major textile and clothing supplier in the United States, the market share is declining.

Pan Yongcai, chief economist of the global market of Hongkong TDC, said that when the TPP came into effect, tariffs on many products would be withdrawn immediately, including most textiles and clothing, which would have a greater impact on related industries.

He said that at present, many Hong Kong businessmen set up factories in the mainland, but because of China's non TPP member countries, they can not get zero tariff preferences, which will weaken the competitiveness of mainland and Hongkong products in TPP member countries.

China's textile exports to the US are falling.

Referring to the impact on the industry, Pan Yongcai pointed out that after the TPP came into effect, Vietnam's share in the textile, clothing and footwear market in the United States will gradually increase and even take the market share of China.

Vietnam is currently the second largest supplier of textiles and clothing in the United States. In 2014, it accounted for more than 8% of the total imports of the United States, and its market share steadily increased in the past 10 years.

On the contrary, although China is still the major textile and clothing supplier in the United States, the market share in 2014 has reached 38%, but China's market share has declined, believing that Vietnam is often an inexpensive alternative supplier to China's exports.

In terms of footwear, Vietnam accounted for nearly 14% of the US's imports in 2014, and also accounted for nearly 66% of China's GDP.

Like textiles and clothing, the US demand for Vietnamese footwear is increasing rapidly, while sales of Chinese footwear are declining.

Pan Yongcai estimated that after the entry into force of TPP, China's textile, clothing and footwear market will accelerate its decline in the US market share. On the contrary, it will boost the market share of Vietnam's three products in the United States.

Many years ago, Hong Kong merchants, who set up a garment factory in Vietnam, said they were pleased with the results of the TPP negotiations for many years, and planned to "add" to the expansion of the Vietnam production line.

He said that tariffs on imports of products were paid by buyers. Currently, Vietnam's tariffs on garments exported to the United States range from zero to 32%, most of which are more than 10 Ba cents (%). If Vietnamese products tariffs fall to zero in the future, Chinese goods still have to pay customs duties, and large quantities of orders are expected to be lost from China to Vietnam, because the more flatten goods are subject to higher tariff.

Although the market is estimated to be effective only two years after the TPP, he said that many American buyers are asking Vietnamese factories if they can take more orders, and more buyers are directly required to increase Vietnamese plant capacity. The business will increase at least one to 20% years after two years.

The cost of business is rising, and SMEs are difficult.

Some people are happy and sad. Liu Zhanhao, honorary president of Hongkong Industrial Association, said that under the fierce competition of the world, the gross profit margin of many Hong Kong funded garment manufacturers, textile factories and shoe factories dropped to less than 10%. When the TPP comes into force, these manufacturers will add to the difficulties, and in recent years, the cost of mainland business is rising.

For Hong Kong businessmen to deal with TPP, Pan Yongcai said that Hong Kong businessmen could consider setting up factories in TPP member countries, or upgrading and upgrading as soon as possible so as to avoid "Dou Ping" and reduce tariffs.

He also hoped that the government could sign a FTA agreement with more countries, because at present, only one FTA in Hongkong is signed with a ten largest economy in the world, that is, CEPA.

In addition, Hongkong has entered into a free trade agreement with the European free trade association consisting of Iceland, Liechtenstein, Norway and Switzerland, and Chile and New Zealand, and negotiations on FTA with ASEAN are still in progress.

Pan Yongcai said that it is best for China and Hongkong to join a free trade zone at the same time. Otherwise, if only China joined, and Hongkong would not join, there would be problems.

"Assuming that China will join the TPP in the future, but if Hongkong does not join it, it may be robbed by Singapore as a member of TPP".