From June 1, China's export tariffs on 81 textile products have been cancelled. This is undoubtedly a good news for the textile and related industries that are currently in high tension. However, whether good news can be transformed into good fortune depends on the ability of each to fight the market.
The state abolishes 81 export tariffs on textiles. From the perspective of the industry chain, textile companies, printing and dyeing plants, and chemical companies such as paraxylene that provide raw materials for textiles will all be directly beneficiaries. There are more than 20,000 textile enterprises in Fujian Province, a large-scale clothing producing province, and the annual profit is nearly 3 billion yuan. And in this 3 billion yuan in profits, including chemical fiber, dyes and other industries contribute. In other words, once profits shrink, it is not only the textile industry that is affected. Taking Fujian Quanzhou as an example, there are more than 10,000 garment factories in the local area, more than 5,000 textile factories and weaving factories, and more than 100 printing and dyeing plants and washing plants. For the Quanzhou economy, the industrial chain around textiles occupies a pivotal position. According to analysis, under the indirect effect of tariff cancellation, the domestic garment industry is expected to enter a new period of development. This will be accompanied by a steady rise in demand for a range of products such as fabrics, dyes and plastic packaging. The first reaction of a chemical company CEO who produced paraxylene to hearing tax exemptions was "a lot of peace of mind."
However, textiles and related industries that have experienced many setbacks in foreign trade barriers do not dare to blindly be optimistic in the face of this good news. The relevant person of Fujian Septwolves Industry Co., Ltd. even said that we are cautiously optimistic about the country's cancellation of some textile export tariffs this time. Cancellation of export tariffs can reduce the cost of some export products, which is undoubtedly beneficial to enterprises. However, the future of clothing exports will certainly face many obstacles and resistance. Trade war is such a way for you to come and go. A CEO of a paraxylene production company said more clearly: "For enterprises, to fundamentally solve the problem of trade friction and avoid the losses caused by the trade war, we must start from two aspects: First, high cost and low efficiency. The small companies should integrate as soon as possible, and secondly, improve the grade and value of the products. We can only actively explore new ideas for products in the market, and strive to improve the competitiveness of products in terms of quality and quantity."
It is understood that textile and related companies have a concern: If European and American countries introduce further trade restrictions, will the export tariffs not be adjusted again? Indeed, fickle tariffs will fluctuate around when foreign companies place orders, and the difficulty of negotiating foreign trade orders will increase. This will affect the business decisions of a series of upstream companies. In fact, this concern is a good thing, indicating that companies are not blindly optimistic. According to Guan Xiuhua, secretary general of the Fujian Textile Industry Association, any adjustment of export tariffs is a new opportunity and challenge for enterprises. When trade disputes are likely to escalate further, companies should be extra cautious about the impact of tariff adjustments. In this process, we must strive to improve our resilience.
The state abolishes 81 export tariffs on textiles. From the perspective of the industry chain, textile companies, printing and dyeing plants, and chemical companies such as paraxylene that provide raw materials for textiles will all be directly beneficiaries. There are more than 20,000 textile enterprises in Fujian Province, a large-scale clothing producing province, and the annual profit is nearly 3 billion yuan. And in this 3 billion yuan in profits, including chemical fiber, dyes and other industries contribute. In other words, once profits shrink, it is not only the textile industry that is affected. Taking Fujian Quanzhou as an example, there are more than 10,000 garment factories in the local area, more than 5,000 textile factories and weaving factories, and more than 100 printing and dyeing plants and washing plants. For the Quanzhou economy, the industrial chain around textiles occupies a pivotal position. According to analysis, under the indirect effect of tariff cancellation, the domestic garment industry is expected to enter a new period of development. This will be accompanied by a steady rise in demand for a range of products such as fabrics, dyes and plastic packaging. The first reaction of a chemical company CEO who produced paraxylene to hearing tax exemptions was "a lot of peace of mind."
However, textiles and related industries that have experienced many setbacks in foreign trade barriers do not dare to blindly be optimistic in the face of this good news. The relevant person of Fujian Septwolves Industry Co., Ltd. even said that we are cautiously optimistic about the country's cancellation of some textile export tariffs this time. Cancellation of export tariffs can reduce the cost of some export products, which is undoubtedly beneficial to enterprises. However, the future of clothing exports will certainly face many obstacles and resistance. Trade war is such a way for you to come and go. A CEO of a paraxylene production company said more clearly: "For enterprises, to fundamentally solve the problem of trade friction and avoid the losses caused by the trade war, we must start from two aspects: First, high cost and low efficiency. The small companies should integrate as soon as possible, and secondly, improve the grade and value of the products. We can only actively explore new ideas for products in the market, and strive to improve the competitiveness of products in terms of quality and quantity."
It is understood that textile and related companies have a concern: If European and American countries introduce further trade restrictions, will the export tariffs not be adjusted again? Indeed, fickle tariffs will fluctuate around when foreign companies place orders, and the difficulty of negotiating foreign trade orders will increase. This will affect the business decisions of a series of upstream companies. In fact, this concern is a good thing, indicating that companies are not blindly optimistic. According to Guan Xiuhua, secretary general of the Fujian Textile Industry Association, any adjustment of export tariffs is a new opportunity and challenge for enterprises. When trade disputes are likely to escalate further, companies should be extra cautious about the impact of tariff adjustments. In this process, we must strive to improve our resilience.
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