On the evening of Monday (13th), host Kang Hui broadcast an international critical commentary titled “China is ready for a comprehensive response.” The sonorous and powerful voice quickly made “Xinwen Lianbo” a hot topic. Search the top.
For the first time, the editor felt that the news broadcast can also make people excited to watch it.
On the evening of Monday, May 13, Beijing time, the Office of the Customs Tariff Commission of the State Council of China announced that starting from 0:00 on June 1, 2019, Increase the tariff rate on some of the US$60 billion list of U.S. goods that will be subject to additional tariffs.
This move is a strong counterattack against the US’s tariff increase on US$200 billion of Chinese goods last Friday. It also once again demonstrates China’s attitude: it is unwilling to fight, but it is not afraid of fighting and will have to if necessary. beat.
Faced with threats, Chinese textile workers must also make their voices heard!
What are Chinese textile people
As a traditional industry of the Chinese nation, textile has its origins as early as The spinning wheels and waist looms dating back to the New Age more than 5,000 years ago, and then gradually became an indispensable part of the Chinese national culture through the development of the Zhou Dynasty, Han Dynasty, Tang Dynasty and other eras.
The most famous textile among them is silk. The trade of silk promoted the communication between Chinese and Western civilizations in ancient times, and the Silk Road has become synonymous with cultural exchanges between the East and the West.
After the reform and opening up, textile, as a traditional labor-intensive industry, was also one of the first industries to earn foreign exchange through exports, making great contributions to the development of the national economy and science and technology. made an indelible contribution.
In 1999, the textile industry’s export surplus was US$32 billion, accounting for 70% of the country’s foreign trade surplus. According to statistics in 2000, there were 13 million industrial workers in the textile industry, accounting for 13% of the country’s industrial workers, and 11.4% of the country’s fixed assets.
The biggest beneficiary after China joins the WTO is the textile industry: within 7 years, the number of jobs in the textile industry is estimated to increase by 23%, and the annual export earnings of textile and clothing will reach 65 billion U.S. dollars. The contribution rate of industry technological progress to output value growth Reaching more than 60%.
In the past two years, as domestic environmental protection, production safety and other projects have become more and more stringent, labor costs have increased, and Chinese textile people have gradually begun to shift from the traditional “win with price” to “win with quality” To win”, industrial transformation and upgrading is accelerating, the added value of products is getting higher and higher, and the competitiveness in the international arena is further strengthened.
It can be said that no matter in the past, present or even in the future, Chinese textile people have always been synonymous with hard work and determination.
(Textile lights-out factory in Weiqiao)
Chinese textile people who have experienced more than 5,000 years of ups and downs, What kind of formation have you never seen? !
The textile industry in ancient China has a glorious history. However, in modern times, due to the corruption of the Qing government, China’s textile industry has been in turmoil.
After the Sino-Japanese War of 1895 (1895), imperialist countries such as Britain, the United States, Germany, and Japan successively opened textile factories in my country. According to statistics, before World War I, foreign capital in the textile industry exceeded domestic capital by a large margin. It can be said that the textile industry in modern China was monopolized by feudal bureaucracy and imperialism from the beginning.
After entering the Anti-Japanese War, my country’s national industry suffered a devastating blow. As China’s traditional industry, the textile industry was naturally not immune.
(The earliest imprint of China’s textile industry)
At the beginning of reform and opening up, the country was trying to solve the basic necessities of food, clothing, housing and transportation for hundreds of millions of people. In response to the “clothing” problem, China began to vigorously develop the chemical fiber industry.
As early as 1978, the country began to prepare for the construction of Yizheng Chemical Fiber when it was extremely poor. It planned to build an annual production capacity of 480,000 tons of polyester and an annual output of 240,000 tons of polyester chips and 240,000 tons of polyester staple fiber. The “Yizheng Model” of borrowing debt to build factories and planning once and constructing step by step was creatively established, which kicked off the magnificent prelude of my country’s polyester industry.
(Yizheng Chemical Fiber at the beginning of preparation)
In the following decades, my country’s polyester filament, PTA , MEG started from scratch, the industry continues to develop, and now it is basically self-sufficient.
In recent years, my country’s chemical fiber industry has gradually opened up the upstream and downstream industrial chains. Take PX as an example. In the past, a large amount of PX production capacity was in the hands of European, American, Japanese and Korean companies. Most of the PX in China’s polyester industry chain needs to be imported, and most of the profits of the industry chain revolve around the PX end.
However, with the development of several multi-million-ton refining and chemical integrated projects in China,� is gradually launched, domestic PX is gradually able to be self-sufficient, and foreign pricing power gradually disappears. As leading companies gradually open up the entire industry chain, the profits of the polyester industry chain have returned to our own hands again.
Having experienced more than 5,000 years of ups and downs, what kind of situation have Chinese textile people not seen? ! The trade war unilaterally initiated by the United States this time is just a hurdle that textile people have to face!
(Hengli’s 20 million tons refining and chemical integrated facility)
Preparation for a comprehensive response
Chairman Mao once said that we must despise the enemy strategically and attach importance to the enemy tactically. Although we have sufficient confidence to deal with the unreasonable tax increase by the United States, we still need to be fully prepared.
The offshore RMB fell below the 6.9 mark
In Xinwen Network’s critical commentary, when it comes to responding to the United States’ reaction, we have prepared a sufficient policy toolbox and are ready for a comprehensive response preparation.
At present, we can intuitively feel that the exchange rate of RMB has undergone tremendous changes.
As of 16:05 on May 13, the onshore RMB fell below 6.87 against the US dollar, falling more than 0.6% during the day.
As of 14:58 on May 13, the offshore RMB against the U.S. dollar fell below the 6.9 integer mark, falling more than 500 points within the day, hitting a new low since December last year.
The depreciation of the RMB exchange rate will greatly promote the export of textile foreign trade and reduce the impact of increased tariffs by the United States to a certain extent. And this is just the first change in a short period of time, and we can expect more changes in the future.
Preventing Export Risks
On the other hand, in terms of details, with the United States Textile people who have business dealings should also do the following aspects to strengthen risk prevention for exports to the United States.
1. Before exporting: clarify the burden of tariffs
Sort out the trade terms agreed in the trade contract as soon as possible, and clarify the parties responsible for the additional tariffs. Before arranging shipment, negotiate frankly with the buyer on issues such as whether the goods will continue to be shipped, who will be responsible for the additional tariffs and the specific methods, and retain written evidence.
Tips: In the absence of other special agreements, the tariffs under trade terms in Groups C, E, and F are generally borne by the buyer; the tariffs in Group D trade terms are generally borne by the export enterprise.
2. Shipped: Prevent the risk of rejection and deal with losses in a timely manner
For goods that have been shipped and are in transit, the buyer’s willingness to clear customs and pick up the goods may be affected by the imposition of additional tariffs. If the buyer explicitly refuses to accept the goods or refuses to cooperate in fulfilling customs clearance and delivery obligations, foreign traders who have purchased relevant insurance should pay attention to the time limit stipulated in the insurance contract, report the loss to the insurance company in a timely manner, and negotiate a goods disposal plan as soon as possible.
3. Future orders: Negotiate and digest the impact of tax increases
Considering future long-term cooperative relationships, it is recommended that export enterprises maintain information communication with overseas buyers and domestic local governments/customs, and negotiate tax increases. Cost digestion plan.
Do your own thing
Yesterday’s sharp comment said that no matter the external situation No matter how things change, the most important thing for China is to do its own thing well, continue to deepen reform, expand opening up, and achieve high-quality economic development.
For textile people, this sentence is also applicable.
No matter how the external environment changes, the most important thing for textile enterprises is to do their own things well, improve their technical level, improve the quality of their products, make long-term plans, maintain stable production and operations, and maintain a normal attitude. to face future changes.
Only when we are strong and confident, can our voices be more powerful when facing external threats!
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