Recently, the State Council issued a statement on the first phase of the Sino-US economic and trade agreement, saying that through the joint efforts of the economic and trade teams of China and the United States, the two sides have reached an agreement on the text of the first phase of the Sino-US economic and trade agreement on the basis of the principles of equality and mutual respect. The text of the agreement includes nine chapters: preamble, intellectual property rights, technology transfer, food and agricultural products, financial services, exchange rates and transparency, expansion of trade, bilateral evaluation and dispute settlement, and final provisions. At the same time, the two sides reached an agreement that the United States will fulfill its commitment to cancel tariffs on Chinese products in stages and realize the transition from tariff increases to reductions.
China believes that as the world's largest economies, China and the United States must proceed from the overall situation in handling economic and trade relations between the two countries. Reaching an economic and trade agreement is conducive to the fundamental interests of the people of China and the United States and the people of the world, and will be in the economic and trade, investment, and financial markets. Have a positive effect. This agreement is generally in line with China's general direction of deepening reform and opening up, as well as its own inherent need to promote high-quality economic development. The implementation of the relevant contents of the agreement will help to strengthen the protection of intellectual property rights, improve the business environment, expand market access, better safeguard the legitimate rights and interests of all kinds of enterprises in China, including foreign enterprises, and also help to protect the legitimate rights and interests of Chinese enterprises in economic and trade activities with the United States. With the expansion of China's domestic market, Chinese enterprises will increase imports of high-quality and competitive products and services from countries including the United States in accordance with WTO rules and the principles of marketization and commercialization, which will help to comply with the trend of domestic consumption upgrading and meet the growing needs of the people for a better life. This agreement is conducive to strengthening economic and trade cooperation between China and the United States, effectively managing and resolving differences in the economic and trade field, and promoting the stable development of Sino-US economic and trade relations. In the context of the current downward pressure on the global economy, this agreement is conducive to enhancing global market confidence, stabilizing market expectations, and creating a good environment for normal economic, trade and investment activities.
The two parties agreed that in the next step, the two parties will complete the necessary procedures such as legal review and translation proofreading as soon as possible, and negotiate the specific arrangements for the formal signing of the agreement.
After the signing of the agreement, it is hoped that the two sides will abide by the agreement, strive to implement the relevant contents of the first phase of the agreement, do more things conducive to the development of bilateral economic and trade relations and global economic and financial stability, and maintain world peace and prosperity.
Important progress in Sino-US economic and trade consultations, the textile industry rekindled hope
On December 13, in the U.S. statement on the first phase of the U. S.-China economic and trade agreement released by the Office of the U.S. Trade Representative (USTR), the U.S. tariffs on Chinese imports changed as follows:(1) The tariffs imposed on US $250 billion (34 billion +16 billion +200 billion) remained unchanged at 25%;(2) The tariff on US $120 billion goods (US $300 billion A list goods) imposed on September 1 will be reduced from 15% to 7.5 per cent;(3)300 billion US dollars list B goods (originally scheduled to be imposed on December 15) will be suspended.
In the above three rounds of tariff increases, textile and clothing products are included:(1) in the US $200 billion tax increase: it mainly includes seven categories of products, such as textile raw materials, yarns and fabrics, involving exports to the United States of about US $10.3 billion, accounting for about 16%; while woven, knitted clothing and home textile products with large exports to the United States are not covered by the tax;(2) List A, which imposed a 15% tariff in September, mainly includes clothing and accessories;(3) The deferred taxation in the list B includes: shoes and boots, non-knitted or non-crocheted clothing and clothing accessories, knitted or crocheted clothing and clothing accessories, I .e. almost all categories of textile and clothing are included in the US $300 billion taxable products.
The Tariff Commission of the State Council of China stated on Sunday, December 15 that the original plan to impose tariffs on some imported goods originating in the United States will not be implemented from December 15; while other tariff measures against the United States and Canada will continue According to regulations, the exclusion of goods subject to tariffs on the United States and Canada continues.
The above information shows that there is no difference between the two sides on the tariff issue for the time being, that is, no further tariff increase and the cancellation of some of the previous tariff increase. In the future, it is also possible to make corresponding adjustments to tariffs as the situation of the negotiations between the two parties changes. This news seems to confirm that the Sino-US trade negotiations are making positive progress and are good for the market.
Nomura's global market research team said the agreement between China and the United States was generally positive and avoided the recent escalation of the Sino-US trade dispute.
The U. S.-China trade agreement was reached at the beginning, and the market sent a positive signal.
Both China and the United States announced that they had reached a "first phase" agreement. The United States suspended its plan to impose a 15% tariff on about US $150 billion of Chinese goods on December 15. This is expected to stabilize the demand for textiles and clothing exports to the United States. Play a positive role.
The long-awaited agreement could ease tensions between the United States and China and give some domestic foreign trade producers a sigh of relief. In the past few months, Sino-US trade frictions have affected these companies to varying degrees. The reduction of US market share and the compression of profit margins are the main problems they face. What is even more troublesome for them is that the uncertainty caused by trade frictions and the changes in US tariff policies have brought many difficulties to their price negotiations with retailers.
According to data recently released by the General Administration of Customs of China, in the first 11 months, the total value of Sino-US trade was 3.4 trillion billion yuan, down 11.1 percent, accounting for 11.9 percent of China's total foreign trade value. Among them, exports to the United States were 2.64 trillion yuan, down 8.4 percent; imports from the United States were 763.05 billion yuan, down 19.5 percent; and the trade surplus with the United States was 1.88 trillion yuan, narrowing 3 percent. In the same period, my country's total imports and exports to countries along the "Belt and Road" totaled 8.35 trillion billion yuan, an increase of 9.9 percent, which was 7.5 percentage points higher than the overall national growth rate, accounting for 29.3 percent of my country's total foreign trade value, and the proportion increased by 2 percentage points.
The results of the Sino-US negotiations will bring marginal improvement to textile and clothing exports, and this tariff reduction will enhance the competitiveness of China's textile and clothing products, benefit the rebound in export growth and improve the profitability of export enterprises.
At the same time, boosted by this good news, the domestic textile market also tends to be positive.On the 13th, the Sino-US trade negotiations began to show the dawn of reconciliation, the market in the morning that day in the exchange rate, the stock market level has a more obvious positive feedback, the RMB exchange rate, U.S. stocks and other asset prices but in the two sides after the announcement of information has a small correction. On Friday, the market rose significantly, the CSI 300 index rose 1.69 per cent, the ChiNext index rose 1.66 per cent, the textile and clothing industry rose 0.39 per cent, weaker than the CSI 300 and ChiNext index, of which the textile manufacturing sector rose 0.18 per cent, the brand clothing sector rose 0.60 per cent.
Affected by the optimism of Sino-US trade negotiations, domestic and foreign cotton futures prices rose. In the futures market, the price of the domestic Zheng cotton main contract (CF2005) was above 13000 yuan/ton, and the settlement price on December 13 was 13355 yuan/ton, up 215 yuan/ton from last Friday. In terms of US cotton futures (ICE2003), on December 10, the USDA monthly report reduced US cotton production, ending inventory and global ending inventory to boost the market. US cotton futures prices rebounded significantly, with the settlement price on December 12 67.17 cents/pound, the increase was more than 2.5 cents/pound from last week. The settlement price of Zhengzhou cotton yarn main contract (CY2005) on December 13 was 21350 yuan/ton, up 305 yuan/ton from the same period last year. From the perspective of the domestic spot market, the domestic 3128B cotton price index has risen, with an increase of nearly 200 yuan/ton, and the price index on December 13 was 13020 yuan/ton; the price index of 32 cotton carded yarns decreased slightly, with a decrease of about 40 yuan/ton.
However, some experts have analyzed that although the text of the first phase of the economic and trade agreement has reached an agreement, it has to go through the signing and implementation of specific details. This requires a process. It remains to be seen how good the agreement will bring to cotton and textile enterprises. In particular, the current situation of cotton and textile is still in the doldrums, the supply of cotton in the upstream exceeds the demand, the sales of cotton yarn in the downstream do not improve much, and the pressure of cotton inventory is not small. In addition, the Spring Festival is approaching, the number of enterprises with early holidays is increasing, and the demand is declining. The operation of enterprises is still facing many unfavorable factors. Therefore, the operation of enterprises should be cautious and not be capricious.
