Recently, the Trump administration shelved a broad import ban on cotton and tomato products from China’s Xinjiang region, while announcing a ban on products from five specific entities.
Although it is only temporarily put on hold and the ban may come back again, it is still a good result for China’s vast foreign trade companies, processing plants, and cotton processing companies. At least it has won some benefits for Chinese companies. Time to breathe, adjust, and respond positively.
Why did the Trump administration consider banning some products or products made from cotton from China’s Xinjiang region in early September? All products, and now the Xinjiang cotton ban is on hold?
The above incidents reflect the political immaturity of the Trump administration from one aspect. Relevant traders said that the Trump administration’s suspension of a broad import ban on cotton and tomato products from Xinjiang may be based on the following considerations: It is not easy for U.S. Customs to trace the origin of cotton, and 70% of China’s cotton spinning and yarn production requires Xinjiang cotton. , if the United States implements this ban, theoretically speaking, U.S. Customs will reject most textiles and clothing from China, not to mention that cotton products and clothing from other countries will also contain Xinjiang cotton, which will be very difficult to operate. In addition, cotton fibers from different sources are mixed in many spinning machines before producing the yarn, which can also make it very difficult to determine the source of the fiber. At this stage, the ban still faces many problems. The White House may also be “waiting for time, looking for opportunities, and finding entry points.” The ban on Xinjiang cotton, yarn, and cotton textiles is only shelved rather than revoked, but it does give both China and the United States Opportunities for observation and consultation.
According to analysis by a research institution, since September 2019, the United States has continued to impose additional taxes on clothing made in China. tariff. From September 2019 to July 2020, China’s share of U.S. cotton apparel imports fell from 28% to 22%. During the same period, ASEAN countries surpassed China in terms of clothing export volume, and their market share increased from 24% to 29%. Therefore, in the context of the epidemic, the continued deterioration of Sino-US relations, and the rise of the textile industry in Southeast Asian countries, Chinese companies are losing the US market.
Although the White House has suspended the implementation of a broad import ban on cotton and tomato products from Xinjiang, some clothing brand companies, buyers and retailers including the United States, Europe and even Japan have Jump out (it is difficult to judge whether there is tacit approval or even “support” from the US government) and require Chinese suppliers and processing companies to ban the use of yarn and cotton products containing Xinjiang cotton, including Adidas, Nike, H&M, Crocodile, ZARA, etc. The brand “picks up the bowl to eat meat, puts down the bowl to curse”; and recently H&M announced that it would not only terminate its business dealings with Huafu, but also launch an investigation into all Chinese suppliers, determined to be a “pawn” in the U.S. government’s sanctions on China’s Xinjiang cotton products. The mentality is clear at a glance.
Textile and clothing companies in some coastal areas of Jiangsu, Zhejiang, Guangdong, Shandong and other places said that although the U.S. government had “brazenly” shelved the import ban on Xinjiang cotton, yarn, cotton products, etc., But behind the scenes, they are encouraging and wooing brand companies and retailers in Europe and the United States to ask suppliers and processing plants to ban Xinjiang cotton products in the name of “individual companies” (not an official decision of the White House), allowing the Chinese government and export-oriented companies to ” Suffer from being dumb.” At the time when Xinjiang cotton is going on the market on a large scale, this operation by the United States will undoubtedly have a negative impact on the price of new cotton.
As the U.S. presidential election approaches in November, the U.S. government and U.S. and European companies continue to expand the ban on Xinjiang cotton, and the probability of hurting people in the back is only rising. Currently, it has the greatest impact on domestic companies. It is orders to the United States that have increased uncertainty. Due to the uncertainty of the U.S. ban on Xinjiang cotton, domestic textile companies will increase their use of imported cotton and imported yarn, and domestic and overseas companies will increase their demand for U.S. cotton. It is conducive to the firming of US cotton prices.
For some time in the future, my country will focus on “internal circulation development”. The Ministry of Industry and Information Technology stated in its reply to Recommendation No. 9528 of the Third Session of the 13th National People’s Congress that the Ministry of Industry and Information Technology will coordinate the promotion of the textile industry. Coordinate layout and development at home and abroad, insist on promoting the domestic circulation as the main body, support the transfer of the textile and apparel industry to the central and western regions, and stabilize and optimize the textile industry chain and supply chain. Against this background, domestic cotton use will focus more on the domestic market, and domestic companies will also need to increase research and exploration of the domestic market. </p
