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Washington time on June 17, the United States government heldSeven-day series of hearings on proposed tariffs on $300 billion of Chinese exports to the United StatesThe first day. Representatives of cashmere clothing manufacturers in New York State, baby products manufacturers in California, and sports shoes manufacturing companies in Massachusetts went to the US International Trade Commission building in the south of Washington, D. C.

Dozens of industry associations and company representatives came from all over the United States to "make representations". In their speeches, the vast majority of them called on the U.S. government not to impose a new round of tariffs on Chinese goods, saying"We cannot do without China's supply chain and cannot afford a new round of tax increases." The tariffs will ultimately hurt American companies and consumers.

It is worth noting that President Xi Jinping should have made an ordinary phone call with US President Trump on June 18. Trump said during the call,The US attaches great importance to US-China economic and trade cooperation and hopes that the working teams of the two sides can communicate and find a solution to the current differences as soon as possible. I believe the whole world wants to see an agreement between the United States and China.Xi Jinping also saidAgreed that the economic and trade teams of the two countries maintain communication on how to resolve differences.

Tax increases directly hit U.S. consumers

Unlike the previous rounds of U.S. tariffs on China, which mainly focused on intermediate products and industrial products, most of the new round of U.S. tariffs on China are terminal consumer goods that ordinary people are most familiar with, including mobile phones, laptops,Clothing, footwearToys, game equipment, etc. Once these tariffs are implemented, American consumers will be directly affected.

Rick Helfenbein, President and CEO of the American Apparel and Footwear Association (AAFA)spoke at the hearing and voiced opposition to a $300 billion tax on U. He mentioned three things in his testimony:Tariffs don't solve intellectual property rights (IPR); don't tax American consumers; don't tax American manufacturers."One thing to note: We need to be sure that attempts to solve problems affecting our industry will not jeopardize our overall trading partnership and be able to do the right thing. Raising tariffs will not solve the problems that plague us. Please do not take measures to impose additional tariffs to suppress us, please remove our products from the tax list." Rick said Helfenbein.

Brent Cleveland, Executive Director, Fashion Jewelry and Accessories Trade Association of AmericaFirst speaker at the hearing. Cleveland said that the import of these daily consumer goods will not endanger the safety of the United States, but the imposition of tariffs will harm the interests of small and medium-sized enterprises and consumers in the United States.

Mark Schneider, CEO of the American shoe, hat, and luggage company Keniscol.He also said that imposing tariffs on goods imported from China would force the company to share losses with retailers and consumers.

Lisa Troff, Executive Director, Juvenile Product Manufacturers Association of AmericaHe said that if tariffs are imposed on infant products imported from China, many American families will not be able to afford safe infant products, which will endanger the safety of infants and young children.

Kerry Stackpol, CEO, International Pipe Fittings Manufacturers AssociationThe inclusion of pipeline products in the proposed tariff list is very puzzled. He said, "Toilets and faucets are an integral and important part of the home. We believe that it is wrong to impose tariffs on these products, which is not conducive to keeping American homes and buildings clean."

American electronics retailer Best Buy, New Bailun Sneaker Manufacturing Company, American Clothing, Shoes and Hosiery Federation, Toy AssociationRepresentatives of other enterprises and industry associations also warned at the hearing on the same day that imposing tariffs on China would increase the cost of American consumers, disrupt enterprise production and damage American employment.

Prior to the hearing, the Office of the United States Trade Representative had received more than 1600 written submissions from representatives of various industries,The vast majority oppose the US government's imposition of tariffs on Chinese goods.The "Washington Post" believes that the large number of objections reflects the increasing concerns of the US business community about tariff policies and the exhaustion of patience with the president's trade policies.

The US lobbying organization "Tariffs Hurt the US Hinterland" recently cited the results of a study that said,If tariffs are imposed on an additional $300 billion of Chinese goods exported to the United States, coupled with the tariff increases already in effect, it will result in the loss of 2 million jobs in the United States and a 1% reduction in GDP.

The global supply chain cannot be separated from China

At the hearing, the most asked by US government officials was still whether companies could shift their supply chains away from China. Entrepreneurs and industry representatives have repeatedly and patiently explained:China's supply chain system is mature and complete, and it is no easy task to move the supply chain away from China; it is even completely impossible for some industries, because China is the only source of imports for many products.

Joan Koloff, CEO, Quinn Apparel, New YorkThe introduction said that the cashmere clothing imported by the company must use high-quality cashmere produced from Alashan sheep in Inner Mongolia, China. At the same time, China's textile technology is high and the quality is guaranteed, so it is impossible to transfer the product supply chain from China.

engaged in the business of shoes, hats, bagsSchneiderAlso said: "Over the years we have established an efficient and stable supply chain in China. If the supply chain is transferred to other countries, the product quality, production capacity and cost performance will not be maintained, and it is even more infeasible to move back to the United States for production because there are no supporting facilities to support the development of related industries."

Rick Halfenbein, President of the American Garment Shoe and Hosiery FederationFrankly, they have tried to shift the supply chain away from China, but the Chinese clothing and footwear industry has always done better than other places. He said that despite the rapid rise in labor costs in China in the past few years, China has successfully maintained its competitiveness by increasing labor productivity.

the "china economic bulletin" issued by the world bank in may pointed out that,When investors decide whether to relocate, they will not only consider the wage differences between countries, but also other relevant factors. China's complete supplier ecosystem, good labor skills and business culture are all valued by investors.Nicholas Lardy, Senior Fellow, Peterson Institute for International EconomicsAt present, foreign direct investment into China remains at a high level and is still rising, he told Xinhua.

Sino-US economic and trade cooperation benefits both sides

The speeches made by the delegates at this hearing once again demonstrated the mutually beneficial and win-win nature of Sino-US economic and trade relations.

Schneider, who has been doing business with China for 35 years, said that he has always enjoyed working with Chinese business partners. China is a good supply base, and the trade relationship with China has benefited American consumers. he stressed that,Tariffs on products such as shoes, hats and bags will not address the concerns of the U.S. government.

American Bicycle Parts Suppliers Association Board Member Bob MageviciusHe said that China is an important part of the global bicycle supply chain. American bicycle manufacturers and Chinese partners have been cooperating well for many years, and the two sides have established a very close cooperative relationship.

Recently, the United States has520 Homeenterprises and141 oneThe trade association jointly sent a letter to US President Trump, urging the US government not to impose tariffs on imports from China, but to return to the negotiating table to reach a solution with China.

The list of new round of tariffs to be imposed by the United States on China involvesChina's textile industry exports a large proportion of clothing, most home textiles and some textile machinery products to the United States, involving products with an annual export value of more than US $40 billion to the United States.. As for whether to formally impose a 25% tariff on the 300 billion-dollar list of Chinese goods, it will be determined after a public hearing to solicit opinions, taking into account the latest progress of Sino-US trade negotiations.

Judging from the testimony of dozens of industry associations and company representatives on the first day of the hearing, it is not a good way to impose a new round of tariffs on Chinese goods. It is expected that after the telephone communication between the two heads of state and the opposition of domestic industry representatives in the United States, there will be a new progress in Sino-US trade negotiations.

It is understood that the US side made two main demands in the call on June 18.The first is to hope that the two heads of state can meet during the G20 Osaka Summit, and the second is to hope that the economic and trade teams of the two sides can communicate. The Chinese side agreed to meet during the call, but reiterated its position., said:

"In recent times, China-US relations have encountered some difficulties, which is not in the interests of both sides. China-US cooperation will benefit both, while fighting will hurt both. The two sides should, in accordance with the consensus we have reached, promote a China-US relationship based on coordination, cooperation and stability on the basis of mutual respect and mutual benefit."

"On economic and trade issues, the two sides should solve the problems through equal dialogue, and the key is to take care of each other's reasonable concerns. We also hope that the US side will treat Chinese enterprises fairly."

It is particularly noteworthy that,The press release mentioned that China's important consideration for this meeting of the heads of state requires "an exchange of views on fundamental issues related to the development of Sino-US relations".

China's Ministry of Foreign Affairs spokesman Lu KangIt was stated on June 19 that the differences between China and the United States in the economic and trade field can be resolved through dialogue and consultation, as long as such dialogue and consultation are based on mutual respect, equality and mutual benefit.

In the final analysis, the final outcome of Sino-US economic and trade issues still depends on whether some people in the United States can truly "solve problems through equal dialogue" and whether they are willing to truly "take care of each other's reasonable concerns".

At this time, we still need to maintain a normal mind and maintain our pace of development.

The key is to do your own thing.