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Core Tip: Over time, the U. S.-China trade detente is playing a positive role. Since the middle of this month, there has been good news from polyester factories and textile and garment enterprises.

Since September 24, the United States has imposed a 10% tariff on $200 billion of goods from China. There are 5745 taxable products in the list, involving a total of 917 items in the textile industry, involving all types of textile yarns, fabrics, industrial finished products and some home textiles, etc., involving an annual export value of more than 4 billion US dollars.

With the continuous escalation of Sino-US trade frictions, since August, many fabric manufacturers that have trade relations with the US market have begun to stop. In Nantong, Jiangsu Province, a trader who mainly exports home textile fabrics to the US market admitted that orders in the US market decreased by 30% in the second half of this year compared with the same period last year.

Judging from the announcement of the transaction results of the * 24th Canton Fair that ended not long ago, the number of U.S. buyers attending the fair fell by 4.07 year-on-year, and the transaction value of my country's exports to the United States was 2.79 billion billion U.S. dollars, a year-on-year decrease of 30.3 percent, a large drop. It can be seen that the measures initiated by the United States to impose tariffs on China are profoundly affecting the direction of bilateral trade.

Not long ago, according to the consensus reached by the heads of state of the two countries in Argentina, China and the United States decided to stop upgrading tariffs and other trade restrictive measures, no longer raise the existing tariff rates against each other, and no new tariff measures for other commodities.

According to a report from Agence France-Presse on the 16th, after Beijing announced that it would suspend tariffs on US-made cars in the first three months of next year, Washington also decided to postpone the deadline for imposing punitive tariffs on US $200 billion of Chinese goods. The Office of the United States Trade Representative officially increased the tariff on China's $200 billion products from 10% to 25% in the Federal Register on the 14th to 12:01 midnight on March 2, 2019.

During the 90-day "truce", the economic and trade teams of the two sides will actively promote consultations in accordance with a clear timetable and road map. The easing of trade between China and the United States is making new changes in the global market.

Domestic chemical fiber weaving hundreds of millions of orders gradually, the mentality improved!

Although there are frictions in Sino-US trade, as far as textile and clothing trade is concerned, the degree of dependence between the two sides is very high: China is the largest source country of textile and clothing imports in the United States, and "made in China" is cost-effective and difficult to replace. A processing company in Ningbo, Zhejiang, said that American businessmen who have cooperated with their own companies for many years have concerns about placing orders and believe that the United States itself is too variable.

However, since the easing of Sino-US trade frictions, the market has been speculating on whether there is a backflow of textile orders. The head of the business of a small and medium-sized textile and clothing trader from Shanghai to the United States said that there is still a time difference between whether the increased tariffs can be canceled and the market reaction will not be so fast. However, the suspension of tariff increases can give enterprises a respite. At present, enterprises are stepping up efforts with US buyers and Chinese manufacturers to jointly deal with the 10% tariff sharing problem and strive to stabilize the number of existing orders exported to the United States. However, after the 10% tariff, the profit will be lower, and the next step will not be to expand or broaden the export business in the US market.

A person in charge of a clothing trader to the United States in Suzhou, Jiangsu Province, believes that although the tariff is still maintained at 10%, the pressure on enterprises' exports to the United States is reduced, but the positive impact of this easing is lagging behind. The person in charge mentioned that the next step will be to transfer to Southeast Asia * clothing orders back part of the return, although re-export to Southeast Asia can avoid the risk of tariffs on the United States, but the local fabric supply than the Chinese market is relatively scarce, the impact on the organization of production is not small.

And over time, the U. S.-China trade detente is playing a positive role. Since the middle of this month, there has been good news from polyester factories and textile and garment enterprises.

Last Friday, foreign trade export orders came a surprise: it is rumored that three polyester enterprises in Ningbo, Zhejiang Province received a total of hundreds of millions of yuan of filament export orders, while a well-known textile enterprise in Nanjing, Jiangsu Province also received hundreds of millions of yuan of textile export orders, which has greatly boosted the long-depressed textile foreign trade market. Of course, the orders received by these companies have their commonalities and characteristics, but in terms of mentality, they have played a positive role in the recovery of orders under the easing of Sino-US trade.

A profit from Southeast Asia? 50 garment enterprises in Bangladesh suspend production!

Earlier, according to market reports, the trade war between China and the United States intensified, causing Southeast Asia to reap "fishermen's benefits". Some companies have moved production facilities from China and the United States to Southeast Asia to avoid being affected by the Sino-US trade war. However, the Southeast Asian market has also undergone great changes due to its own market structure.

According to a report by the Daily Star on December 13, Rahman, chairman of the Bangladesh Garment Manufacturers and Exporters Association, said at an emergency press conference that in the past three days, workers in the garment industry have demanded that the new * wage standard be implemented as soon as possible. The demonstrations have caused concerns about the deterioration of the situation. As many as 50 garment companies in Ashulia and Gazipur have suspended production.

Bangladeshi garment manufacturers fear the new wages will spark massive labor unrest.

With the rapid development of China's economy in recent years, many factories have already faced the problems of labor and rising costs. The trade war has become a trigger point to urge them to relocate their production lines as soon as possible. Previously, many manufacturing orders flowed from China and abroad to Southeast Asia *, such as Bangladesh and Cambodia, which are rich in labor resources *. However, after returning to calm after the outflow boom, many companies have found that there are many problems in the local manufacturing industry, such as the completion of orders with tight delivery times or orders with high labor complexity.

Some analysts believe that although Southeast Asia has gradually become a key area for enterprises to consider relocating their business, they are facing challenges such as insufficient skilled workers, infrastructure failure, worker quality and safety, and bureaucracy, and may not be able to fully absorb the opportunities brought by the Sino-US trade war.

It is not a matter of a moment to move the factory. It will take several years to raise funds, find the right suppliers, find new logistics procedures, and deal with unfamiliar legal and accounting problems in a new place. Therefore, some companies will start with the production of materials and initially only transfer part of the production line. With the easing of Sino-US trade, companies and orders that may move to Southeast Asia will have to slow down.

Although the Sino-US trade easing has allowed us to see some new positive changes, some experts remind companies that the recent positive changes in Sino-US trade policy should be treated with a normal mind. In the next period of further negotiations between the two sides, it is not ruled out that there will be new twists and turns. While striving for * results, we must prepare for the worst and never be careless. Textile and garment export enterprises to the United States can not be taken lightly, must do a good job of long-term planning.