In mid-September, the Trump administration shelved a broad import ban on cotton and tomato products from China’s Xinjiang region, while announcing smaller bans on products from five specific entities (including the Xinjiang Junggar Cotton and Linen Co., Ltd. cotton processed by the company).
Although it is only temporarily put on hold and another “boot” may still fall, it is still a good result for China’s export-oriented enterprises, processing plants, cotton processing enterprises and Xinjiang cotton farmers ( It is somewhat similar to the ending in which ByteDance, Oracle, and Walmart reached a principled consensus on the “California on the Cloud” plan and obtained Trump’s “in-principle” agreement), which at least gave Chinese companies time to breathe, adjust, and actively respond.
Several international cotton traders predict that the Trump administration’s suspension of a broad import ban on cotton and tomato products from Xinjiang may be based on the following two considerations: First, because the scope is too broad, once the ban is implemented , is likely to trigger strong counterattacks from the Chinese government. The political “capital” that Trump is proud of – the first phase of the Sino-US trade agreement may face implementation risks; second, the US’s genetic tracing technology is not very mature or practical. The cost is high, and it is still impossible to avoid Chinese companies’ guerrilla tactics such as detours and changing “horse clips”. Therefore, the White House may also be “waiting for time, looking for opportunities, and looking for entry points.” The ban on Xinjiang cotton, yarn, and cotton textiles is only shelved rather than revoked, but it does give China and the United States an opportunity to prepare for war, observe, and negotiate.
Although Trump and the White House have 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 Xinjiang cotton, yarn, and cotton products, including Adidas, Nike, H&M, Crocodile, ZARA, etc. “Pick up the bowl to eat meat, put down the bowl to curse” and other brands. Recently, H&M announced that it would not only terminate its business dealings with Huafu, but also launch an investigation into all Chinese suppliers. It is determined to do what Trump and the U.S. government impose on China’s Xinjiang cotton The clown mentality of the product’s “pawn” is clearly visible.
Some textile and clothing companies in coastal areas such as Jiangsu, Zhejiang, Guangdong, Shandong and other places said that although the U.S. government had “boldly” shelved the import ban on Xinjiang cotton, yarn, cotton products, etc., it had secretly Instigating and wooing brand companies and retailers in Europe and the United States and other countries to require suppliers and processing plants to ban Xinjiang cotton products in the name of “individual enterprises” (not an official decision of the White House), leaving the Chinese government and export-oriented companies to “suffer dumb losses.” 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. Chinese companies must beware of unfounded accusations and attacks by “clowns” at all times and reduce losses. to the lowest.
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