Trade confrontation between the United States and China in the black face strategy

In a statement issued in May 29th (2018), the White House stated that the final list of China’s “301 tariff” will be published before the middle of this year, and the United States will announce the investment and export controls and restrictions on Chinese individuals and entities by the end of June, with the aim of important scientific and technological industries.

The president of the United States Trump repeatedly stressed that he and President Xi Jinping China good personal relations, more at the continental United States sanctions for violation of the ban on communications equipment manufacturers ZTE to intercede, also admitted will consider whether to sell Xi Jinping in the face “ZTE case”, which is caused by the two world a call.

In addition, Liu He, vice premier of the State Council, visited the United States and talked with American officials. He subsequently accepted the visit of Chinese official media to claim that “the United States and China have reached consensus, do not fight trade wars, and cease to impose tariffs on each other.”

Although Steven Mnuchin, the American negotiator and finance minister, later accepted American media visits with Liu He, the White House statement today showed that the administration of trade policy, plus the opinion of Congress, would not allow China to take the green light of the “direct White House” route. Although China’s trade war has been suspended, it has not been terminated. The practice of levying tariffs is about to be implemented.

The White House lists four key points, emphasizing the “unfair trade policy” of the Sichuan general assembly against China, with the exception of “China made 2025”, and a number of China’s unfair trade as well as the cause of the United States.

The White House pointed out that according to the 301 clause of the trade law, the United States launched a survey of China for 25% tariffs on Chinese commodity courses worth $50 billion and contains important industrial technology. The White House also mentioned that the final product list, including the products related to the “China made 2025” program, will be in June. It was announced 15 days ago.

The United States will also implement specific investment restrictions and strengthen export control for the Chinese individuals and entities to acquire important industrial technologies, and the relevant measures will be announced by June 30th.

The White House also points out that the U. S. trade representative’s trade discrimination against China is suing the World Trade Organization (WTO) and negotiating with China through the WTO dispute settlement mechanism, and it will continue.

The White House accusations about China revolve around “injustice”, including unfair trade in China for many years. It has been a cheap, unfair and reciprocal trade in the United States. Especially, industrial policy made by “China made 2025” has hurt American and global enterprises; China’s aggressive way of trying to get American Enterprise technology is broken. Bad creativity and creativity of the United States, the United States employment injury; against unfair trade Chinese as Donald Trump will come forward; Trump will protect American innovation and creativity.

The interpretation of internal Trump government in the trade of China approach highlights the hawks and doves of the contest, but the key is still in spite of the president of the United States have decision-making power strong, the American system is different from Chinese “one day”.

Since, Trump ZTE intercede rare bipartisan consistent criticism, show the Democratic balance (Check and Balance) yuan, by promoting legislation, let Trump unable to respect the president’s easy for ZTE green light.

The administrative departments of the duties, in charge of trade policy of the United States trade representative Trump according to the memorandum signed by the relevant public launched “301” to levy tariff mechanism, obviously, with Trump friendship, call process is still unable to stop the administrative department to start, but the administrative department intends to limit the specific investment resorted to the And strengthening export control has also been supported by legislative departments.

Bowen (Bown), a senior fellow at the Peterson Institute for International Economics (PIIE), points out that this shows that trade wars in the United States and China will “no longer be shelved”, but the focus will be on what impact China’s counteraction will have on American agricultural and energy exports.

Bowen pointed out that if the Beijing impression is Trump has set aside 301 “tariffs”, the White House statement will make China so-called “independent” buy American products and expand the import complex.


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The American Textile Association strongly supports Trump levy 301 tariff on Chinese textiles and garments.

In May 17th, the United States Trade Representative Office (USTR) held a hearing on China’s 301 tariff in Washington, D.C., and the president and CEOAuggieTantillo of the National Textile Association (NCTO) of the United States attended the hearing and testified.

“The US textile industry strongly supports the 301 clause of the Trump administration to punish China’s rampant intellectual property theft.” Auggie Tantillo said at the meeting.
“The US textile industry urges the Trump administration to include textiles and clothing products in retaliatory 301 tariff measures against China.” Tantillo added that China’s predatory, illegal trade operations, including intellectual property theft, have caused millions of losses in American manufacturing jobs, including thousands of jobs in the textile industry.

“China’s leading position in the global textile market is obviously being helped by its rampant theft of intellectual property rights in the United States. From the patent infringement of high performance fibers, yarns and fabrics to the copyright infringement of textile household goods, China has gained a price advantage through flagrant illegal activities. A 301 tariff on China’s textiles and clothing exports will send a late signal to China that these predatory acts will no longer be tolerated. ” Tantillo said.

In addition to Tantillo’s hearing testimony, NCTO, the American Industrial Textile Association (USIFI) and Narrow Fabrics Institute (NFI) submitted a joint statement of up to 24 pages as part of the open comment procedure of the office of the United States trade representative. A statement before USTR said that the public could submit written comments to the trade representative office on the list contents and tax rates by May 11th.
In April 3rd, the office of the United States trade representative published a list of Chinese goods to be imposed on tariffs on the basis of the results of the “301 survey”, involving about $50 billion worth of goods imported from China each year.

NCTO is a trade association headquartered in Washington, D.C., representing textile manufacturers in the United States.
The following are some related data on the textile and apparel industry in the United States in the past two years.

In 2017, the number of employees in the US textile supply chain reached 550500.
In 2017, shipments of textiles and clothing in the United States amounted to $77 billion 900 million.
US exports of fibre, textiles and clothing amounted to US $28 billion 600 million in 2017.
In 2016, total capital expenditures for textile and clothing production amounted to US $2 billion 400 million.

What influences China’s industry will be affected

For a trading power like China and the United States, the outbreak of trade war is not good for both sides. For China, the industry with large exports is the first to bear the brunt of the current export of more products in the United States including mechanical and electrical, clothing, toys and so on, these industries are bound to be greatly affected.
In addition, the United States specifically accused “China is suspected of violating intellectual property rights in the United States and forcing us companies to transfer technology”. As a result, China’s more influential companies in the US, as well as those with American technology companies, may also be directly affected or even investigated.
In fact, the trade friction between the United States and China has never stopped. From 1980 to 2016, the United States launched 262 trade relief surveys on Chinese products, involving a total of 28 billion 220 million US dollars, averaging at least 7 per year. According to the statistics of the United States International Trade Commission, by the end of March 2017, there are 110 anti-dumping duties on Chinese products and 43 countervailing duties, with a total of 153.
From the industry perspective, China’s textile and garment industry is also facing severe trade friction in the first half of this year. According to statistics, in the first half of the year, China’s products suffered from 37 cases of trade relief investigation from 15 countries and regions, including 28 anti-dumping cases, 4 countervailing measures, 5 safeguard measures and a total amount of $5 billion 300 million. From the perspective of country, 12 cases were registered in India, and 11 in the United States, ranking the top two.

In recent years, most of the countries in the field of textile and clothing are concentrated in the developing countries. However, in the first half of this year, the US cases reproduced in the United States. This new trend needs our government departments and related enterprises to attach great importance to it. In June of this year, the United States launched a double counter survey on my polyester staple. It was once again 6 years later on the investigation of the textile and garment industry. The trend behind the development of the textile and garment industry is worth paying attention to. Among them, the anti-dumping investigation is targeted at China, India, South Korea, Vietnam and Taiwan, China. Countervailing investigations are directed against China and India. The dumping investigation period is from October 1, 2016 to March 31, 2017; the subsidy survey period is 2016. In 2016, the total exports of products to the US amounted to about US $80 million.

China’s textile and apparel exports to the United States increased by 5.7%, and export challenges and opportunities coexist.

In the first quarter of this year, China’s exports to the United States accounted for 16.7% of the total textile and clothing exports, up 5.7% over the same period last year. From the point of view of export structure, clothing export is the main factor, textile exports are subsidiary, garment exports accounted for 70.7% in the first quarter, and textile exports accounted for 29.3%. China and the United States have a huge trade surplus in the textile and garment trade. The cumulative trade volume of China’s textile and clothing in the first quarter is 293 billion 150 million dollars, of which 9 billion 610 million US dollars, imports 180 million US dollars, and the total trade surplus of 9 billion 430 million US dollars.

Trade friction between China and the United States is a hot topic of concern at this Canton Fair. At present, textile and clothing products are not listed in the first round of tariff products, while the second round of both China and the United States released products related to the textile industry. If trade frictions continue to escalate, the textile industry will be affected in the second half of the year.

The U. S. Department of commerce data shows that in 1-2 months of 2018, the top four exporters of American textile and clothing were China, Vietnam, India and Bangladesh, which accounted for 35.8%, 10.9%, 6.9% and 5% respectively. At present, China still occupies an absolute advantage. As the second largest textile and garment import market in the United States, Vietnam is most likely to undertake the transfer of orders because of its relatively perfect industrial matching, low production cost and abundant labor. The Sino US trade friction will make Vietnam take advantage of the favorable conditions and snatch China’s export to American textile and clothing orders, which is a severe challenge for Chinese textile and clothing enterprises.

Most exhibitors believe that in the light of the interests of domestic buyers, the United States will not add tariffs to textile and garment products. The textile industry in the United States has long shrunk seriously, and it has no direct effect on the US manufacturing industry. As China is the most complete textile and apparel industry chain, no country in the world can compete with it. In addition, with the acceleration of the global layout of China’s textile industry, many Chinese enterprises have been laid out in Vietnam and other Southeast Asian countries in recent years. Even if the United States levies taxes on imported Chinese textiles, the impact on such enterprises is limited.
Sino US textile trade friction has a long history. In the most difficult time, it did not stop the development of China’s textile industry, but accelerated the upgrading of China’s textile industry. In the face of Sino US trade friction, enterprises should speed up transformation and upgrading, strengthen themselves, look for the general trend and enhance their ability to resist risks.

South Korea’s minimum wage and shorter working hours policy still lacks supporting programmes

According to the South Korean media, the Korean congressional environmental labour Commission held a public hearing in April 11th (2018) and listened to the comments of the minimum salary Committee for the revision of the minimum salary range. At present, there are still differences in bonuses, welfare fees and accommodation costs.

It is pointed out that the “bonus” is still the most controversial point. If only the “monthly bonus” is calculated, differential treatment will be generated according to the “monthly” and “monthly” payment methods. The South Korean Minimum Wage Commission launched a consultation on labor and capital in March to discuss whether the “regular bonus” was included in the minimum salary calculation. Because of the failure of the consultations, the issue was submitted to the Congress for consideration. It was not expected that the Congress was in the state of opposition to the country because of the “broadcasting law” and so on. South Korea’s small and medium-sized business owners have criticized that Congress should pass the resolution as soon as possible, so that enterprises can find solutions accordingly.

There has been no progress in improving the “shortened man hour” policy. The “flexible working hours system” of the relevant supporting measures will be carried out from the second half of the year, according to the 10 basic month of the South Korean Ministry of employment. The Korean industry has criticized that since July this year, more than 300 large companies should be formally introduced to shorten the time of labor policy, and the government has acted slowly and has not taken care of the adaptation time of the private industry.

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【PRINTING&DYEING IN CHINA!】The new printing and dyeing regulations will lead to the rise of textile and garment market.

“Now there is no way. The fabric is too tight. Several orders have been pushed forward.” Ji’nan’s three yuan, the chairman of the Garment Co., Ltd. coke coke Ji recently really a little anxious. Many small and medium-sized printing and dyeing enterprises have shut down, which bring two difficulties to the downstream clothing, home textile and other enterprises: “rice” and the pot, and “rice price” is still rising.

Another news is that the Ministry of industry and Commerce recently amended two printing and dyeing industry regulation documents, and the two new printing and dyeing regulations were implemented since October 1, 2017. The regulations mainly focus on the term “environmental protection”, and have new requirements for the technology, equipment and management of the printing and dyeing industry. The higher environmental threshold will lead to the rising tide of textile and garment market.

Small printing and dyeing factories shutting down, clothing enterprises “wait for the rice pot”.
As the upstream supplier, the printing and dyeing enterprises buy the cloth and make the printing and dyeing according to the different needs, and then sell them to the garment production enterprises. Due to the pressure of environmental protection, printing and dyeing factories began to shut down in August, which means that the whole production chain suddenly had a chain.

A large number of printing and dyeing factories shut down and shut down. For some garment enterprises, it means “directly breaking the rations”. Jiao Chai said that its upstream suppliers were mainly concentrated in Shandong, Zhejiang and Guangdong provinces. In this round of environmental protection, some small printing and dyeing enterprises were eliminated because of the failure to meet the standard, which led to a sudden drop in the output of the fabric. Luckily, this part of the gap was transferred to a large supplier, and it would not be “no rice pot” for the time being.

However, raw materials prices continue to rise because of insufficient supply in the market. “Compared with the beginning of the year, the fabric price has increased by more than 10%, and some even reached 20%.” For garment enterprises, the extension of delivery time also brings great trouble.

The so-called “golden nine silver ten” is now the most frequently placed order. Jiao Chai told reporters that, as some small printing and dyeing factories have reduced or shut down, the clothing enterprises have to be forced to transfer orders, so that the large enterprises with complete environmental protection facilities are extremely hot. Due to the sharp increase in orders, the delivery time is longer than originally.

“In the past, hasten may be able to arrive in half a month, and now it may well not be able to wait for 30 days.” Jiao Ji Ji said that some orders were urgent, and the delivery period of raw materials was too long.

Printing and dyeing new rules to add code, this round of rising tide has just started?

“The double eleven is coming, and now it is being stocked up.” Like the clothing industry, the home textile industry is also facing a tight supply situation. As the first towel brand of the Internet, Ji’nan’s drizzle home textiles has recently been in the printing and dyeing mill. A person in charge told reporters that the goods that could be produced in the past few days would probably be the longest waiting for half a month.

Insiders said that this year, the printing and dyeing industry suffered the most serious “environmental governance”. In addition, the Ministry of industry and information has revised the two trade specification documents of the entry

conditions of printing and dyeing industry (2010 Revised Edition) and the temporary measures for the management of the admittance management of printing and dyeing enterprises, forming and Issuing the “standard conditions for the printing and dyeing industry (2017 Edition)” and the provisional measures for the management of the standard bulletin for printing and dyeing enterprises. The two new version of the document has been implemented since October 1, 2017.
“It is foreseeable that the small factories that do not meet the standard will continue to shut down, and the investment of large enterprises in environmental protection will increase continuously, with the increase of the price of printing and dyeing raw materials, and the cost pressure of the future home textile and clothing enterprises coming from the upstream will be more and more big.” The head of a home textile enterprise in Ji’nan said that the price of raw materials has risen by at least 5% since this year, and the price of the terminal market is only “slightly adjusted”.

“For new customers, we will quote the cost according to the new cost. But for many years, it is difficult for old customers to say that price rises are acceptable. Jiao Chai said, at least from the present point of view, the rise in price can only be “slowly negotiated”, as for the cost pressure, the enterprise only repeatedly reduced profits, bitten on the teeth.
Many industry manufacturers say that it is certain that breaking the goods in peak season is a foregone conclusion. Many printing and dyeing enterprises have eliminated backward production capacity and have reached the key to survival. The price rise of home textiles and clothing fabrics has just started. In the coming period, the price of downstream products will show a cost driven rise.

Beijing will fight back to levy taxes on us rubber products, including EU and Singapore.

China has decided to levy taxes on the import of halogenated butyl rubber products from the United States because of a double counter survey that began in August of last year in China to adjudication that the U. S. halogenated butyl rubber products have a problem of dumping. The European Union and Singapore’s similar products are jointly and severally taxed.

According to the Reuters today, the Chinese Ministry of Commerce announced on Thursday that it had initially ruled that the imported halogenated butyl rubber originating in the United States, the European Union and Singapore had been dumped. The domestic halogenated butyl rubber industry had suffered substantial damage and decided to guarantee the imported halogenated butyl rubber originating in the United States, the European Union and Singapore. Temporary anti-dumping measures in the form of gold.

According to the announcement of the website of the Ministry of Commerce, according to the ruling, since April 20, 2018, the import operators should provide the corresponding margin to People’s Republic of China customs according to the firm dumping margin (26.0%-66.5%) determined by the adjudication, when importing the halogenated butyl rubber originating in the United States, the EU and Singapore.

According to the announcement, the Ministry of Commerce issued a bulletin on the application of the domestic halogenated butyl rubber industry in August 30, 2017, and decided to investigate the antidumping cases of the imported halogenated butyl rubber originating in the United States, the EU and Singapore.

The report means that the website of the Ministry of Commerce of China has published an announcement that in August 14, 2017 the anti-dumping investigation application of the Zhejiang Xinhui new material Limited by Share Ltd and the Panjin and Yun new materials Co., Ltd. on behalf of the domestic halogenated butyl rubber industry was received, and the applicant requested the imported halogenated butyl from the United States, the EU and Singapore. The antidumping investigation of base rubber was carried out.

According to the evidence provided by the applicant and the preliminary review by the Ministry of Commerce, the production of the halogenated butyl rubber of the applicant in 2014, 2015 and 2016 accounted for more than 50% of the total output of similar products in China, which is in accordance with the eleventh and thirteenth articles of the anti dumping regulations of the People’s Republic of China. Check the requirements of the application.
The application claims that the halogenated butyl rubber originating in the United States, the European Union and Singapore will be exported to China at a price below normal value.