Sino US Trade War, What Action Does "Clothing Production" Have In The Two Countries?

It was also on this day that in June 16th, New York announced the implementation of a comprehensive support policy plan for garment production in Manhattan, the traditional clothing industry block -Garment District.

The US government has issued a list of tariffs, which will impose a 25% tariff on imports from China of about $50 billion. 50 billion the list includes 1102 products, including products related to China's 2025 strategic plan, to dominate emerging high-tech industries that will drive China's future economic growth. Among them, about $34 billion has been imposed on Tariffs since July 6, 2018, while public tariffs have been solicited for tariffs of about $16 billion.

June 15th at 8 o'clock in the evening

In response to the US's 25% duty on US $50 billion, China's Ministry of Commerce said at 8 o'clock on June 15th.

1, China and the United States have conducted rounds of consultations on economic and trade issues, trying to resolve differences and achieve win-win results. The Chinese side deeply regrets that the United States has ignored the consensus formed by both sides and has been capricious and provoked a trade war. China is firmly opposed to the damage of bilateral interests and the destruction of the world trade order.

2 China's Ministry of Commerce said that China did not want to fight a trade war, but faced with the shortsightedness of the US side, China had to respond forcefully, firmly defend the interests of the state and the people, and firmly defend the economic globalization and multilateral trading system.

3 China's Ministry of Commerce pointed out that China will immediately introduce the same scale and equal intensity of taxation measures, and all economic and trade achievements reached by the two sides will be invalidated.

4 China's Ministry of Commerce said that in the present era, launching trade wars is not in line with global interests. China calls on all countries to take concerted action to resolutely put an end to this outdated and retrograde behavior and firmly defend the common interests of mankind.

5, China's Ministry of Commerce announced that the dumping and dumping period of anti-dumping measures applicable to the imported seamless steel tubes with high temperature and pressure bearing alloy steel originating in the United States and the European Union should be reviewed during the period.

June 16th morning

Then the Ministry of Finance issued a notice on the morning of 16: the Customs Tariff Commission of the State Council decided to impose a 25% tariff on imported goods from the United States for about 659 US $50 billion, and announced a list of tariffs added.

To put it simply, China does not pick anything, but when the United States punches, China will definitely return the same punch, the same time and the same weight. In the past 1 months, the quiet trade relations between China and the United States have been revival. And this time, we need to go to battle with real guns and guns.

There is no doubt that this is a battle that has been imposed on China, but China's hard fought counterattack is indeed worth noting. At least four interesting observations:

1, the same scale. The United States is aiming at $50 billion of Chinese goods, so I am sorry that China will fight back against your US $50 billion commodity. China is not afraid to come, not to be impolite.

2, the same strength. The United States is going to impose a 25% tariff, and China is unkind, and the list of American goods, as well as 25% of China's tariffs. China does not cause trouble, but it is not afraid.

3, thunder strikes. Within 6 hours, the detailed counterattack list was made public. At the same time, all the consultations were announced. China should be prepared to cope with it.

4, stand up. According to US media reports, the United States has drawn up second lists of Chinese goods in order to retaliate against China's counterattack. But people familiar with the matter also revealed to the author that China has also prepared a counterattack list of the same scale for us products. Since America wants war, let's go through it.

In the list, the products that were added to the tariff in July 6th included combed cotton and cotton lint.

So far, the Dragon Boat Festival and the Sino US trade war can be called a full-scale war.

On the same day, analysts pointed out that although the United States taxes on China did not directly involve the textile and garment industry. However, the textile and garment industry is a labor intensive industry, which can solve many people's employment. Despite Trump's desire to return the industry to the United States, the textile and garment industry in the United States is shrunk, labor costs are too high and the possibility of returning to the United States in the short term is low.

Therefore, once the Sino US trade war is again burning, the United States will raise tariffs on textiles and clothing to deal with China, to a large extent, a matter of time.

The fruit is not the same.

It was also on this day that in June 16th, New York announced the implementation of a comprehensive support policy plan for garment production in Manhattan's traditional clothing industry block -Garment District. What does this plan mean in the context of the Sino US trade war?

The United States announced a comprehensive support for the "clothing production" policy.

The plan follows the recommendations of the Garment District Steering Committee, and the supporting policies include:

A new tax incentive plan (IDA) is designed to protect production space here.

It supports the acquisition of a garment manufacturing structure through public-private partnerships.

Set up special permits to restrict hotel development in the area;

A regional change plan proposal that will have a positive impact on clothing production in the district (the public inspection process was launched in June 11th).

Gale Brewer said: "the technical workers and professional supplier ecosystems in the clothing industry are concentrated in Garment District, which is the cornerstone of New York's fashion industry."

The Garment District IDA plan is a tax incentive plan for the New York industrial development board (NYCIDA), which will allow owners to lease long-term housing to fashion manufacturers, including manufacturers in fashion supply chains such as plate making, embroidery, printing and dyeing. The tenancy of a house can be as long as 15 years, and the maximum total rent per square foot is US $35 (including utilities and other expenses). As a reward for participating in the IDA plan, owners will receive discretionary tax benefits from NYCIDA.

In addition to the IDA plan, the de Blasio government also promised to provide Garment District with us $2000 million to facilitate the acquisition of a building for clothing production in the region. It is reported that the building will serve as a dedicated production space and operate jointly with non-profit organizations in the form of public-private partnerships.

Europe and the United States pick up the garment manufacturing industry and train garment workers in their own country.

Apparel retailers in Europe and the United States measure every cause of rising costs: raw material prices, protracted customs procedures and unreliable energy supply, unstable management quality, industrial or political turbulence, moral health and safety regulations, spanportation costs caused by oil price fluctuations and environmental impacts. All these factors increase the offshore cost of garments and extend the time of clothing production.

In fact, after the financial crisis, the developed economies are reviewing and correcting the past strategy of "de industrialization" and "de manufacturing". "Re industrialization" has become a common strategic choice of many developed countries, and some large and influential retailers and branding firms are also actively seeking to develop manufacturing bases closer to the consumer market. Their first step is to train a new generation of skilled workers.

In the United States, Britain and other countries and Hongkong, the shortage of skilled workers is a major factor hindering the recovery of manufacturing industry. The textile and garment industry in Britain dropped to 800 thousand workers in the 80s of last century, up to 100 thousand now. Fashion's right to speak is firmly grasped by designers and marketers. No one will think that providing exquisite clothing technology is a "sexy" thing.

How can the United States train more garment workers locally?

The Fashion Enter project launched by Jenny Holloway in North London may be worth learning from. In 2006, the founder set up a garment manufacturing base and an accredited practice mode in the town of Harlinge (Haringey), giving the unemployed young people the opportunity to acquire practical skills training. With the support of the town council, she also visited ASOS, John Lewis and Marsha general to invest in production bases and apprenticeship programs. Most importantly, they also put in some clothing orders, where they test water production.

The efforts of enterprises and social teams have achieved certain results. But shaping the new generation of workers still needs national government support, such as the restoration of sewing school courses and the implementation of apprenticeship programmes across the country. Influential fashion institutions like the British Fashion Council also need to acknowledge the importance of manufacturing to fashion in public opinion.

The New York municipal government and CFDA (fashion designers Council) set an example in this regard. They set up the Fashion Manufacturing Initiative (FMI) foundation, aiming to restore the "lost art sewing skills" and revitalize New York's clothing manufacturing industry.

With the narrowing of the manufacturing cost gap between developed economies and developing countries, the United States has adopted some new intelligent manufacturing technologies to make clothing production more intelligent and efficient, reduce dependence on manpower, and produce factories closer to the consumer market, thus gaining the advantage of quick reaction.

Once the large-scale use of these new technologies and continuous improvement and improvement, the United States will produce a batch of local garment processing plants that are quick and flexible in their work. The garment manufacturing industry may indeed have the chance to turn over.

In addition, recently, the United States has launched a trade war with China. In order to crack down on China's manufacturing industry, and at the same time, in order to increase its employment, perhaps the United States has a hot brain in the country to regain the garment manufacturing industry. We must know that Trump can do anything.

No matter how the American people are tossing about, China, with the strong advantages of the textile and garment industry chain, the increasing original research and design of Chinese clothing brands, and the high quality and efficiency of Chinese industrial workers, will still take the lead in China's garment manufacturing industry.

Textile industry

Trump's latest import tariff threat will damage the global trading system, trigger other countries' immediate retaliation and damage the US economy. What do they think about it in the textile industry?

In the long run, we must improve the competitiveness of our products.

Some enterprises said: the tariff reduction, on the surface, may lead to further weakening of the price advantage of domestic related products, resulting in market share continued to be squeezed. But this is not the case. First of all, China's textile and apparel imports are not large, accounting for only 4.54% of exports. Secondly, domestic imports of clothing, shoes and hats are mainly middle and high-end or even luxury products, and there is no obvious homogenization competition with domestic products, so reducing the impact of tariffs on domestic products is relatively limited.

Related enterprises also said: it seems that the tariff reduction has limited impact on domestic textile enterprises. But in the long run, enterprises must improve the quality of products and enhance the competitiveness of their products, so that they can not be replaced by imported products. After all, tariff reduction will bring some impact to domestic products. Therefore, in the present time, enterprises must do everything possible to improve their product advantages.

Don't be afraid. It's both a challenge and an opportunity.

Although the United States does not directly involve the textile and garment industry in the field of Taxation in China. However, the textile and garment industry is a labor intensive industry, which can solve many people's employment. Despite Trump's desire to return the industry to the United States, the textile and garment industry in the United States is shrunk, labor costs are too high and the possibility of returning to the United States in the short term is low.

Therefore, once the Sino US trade war is again burning, the United States will raise tariffs on textiles and clothing to deal with China, to a large extent, a matter of time.

Textile and clothing, household appliances, some personal durable goods, furniture decoration, etc. industry China's exports account for a relatively high proportion of private consumption in the US. At present, the US tariffs on these industries are not very high, such as China. clothing Common product tariffs are generally around 10-20%. If the tariffs of these products increase to 45%, they will have a greater impact on exports.

There are many trading partners in the United States. Besides China, it can purchase from Vietnam, Mexico and India. It is easy to spanfer orders. This is a severe challenge for Chinese textile and garment enterprises.

However, some textile enterprises also say that even if the trade war is really fought, we are not afraid of it. Chinese textile enterprises have limited dependence on the US market. According to statistics, in 2017, China's textile and clothing exports amounted to 268 billion 600 million US dollars, of which 17% of the total exports to the United States accounted for 18.2% of the total. At the same time, we also have many other textile export places such as Southeast Asia and Africa.

In short, no matter how to adjust the macro tariff policy between China and the United States, as the downstream textile enterprises, the most important thing is to do well their products, markets and services. Time makes heroes, heroes create the occasion.