Will China'S Textile Industry Really Kick Back?

In February 4, 2016, the 12 countries of the United States, Japan, Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam formally signed the p Pacific Partnership Agreement (TPP) agreement in Oakland.

Together, the 12 participating countries account for 40% of the global economy.

TPP will reduce or exempt nearly 18000 kinds of other commodities.

Among them, the rules of origin in the TPP agreement deserve attention.

For example, enterprises must ensure that the whole process of yarn, textile, printing and dyeing is carried out in TPP members. All raw materials must be purchased within TPP, otherwise they will not enjoy the tax exemption policy.

From a certain point of view, this is precisely tailored to the exclusion of China.

In the past forty years, international freedom

The biggest beneficiary of the system is China.

Previously, the Minister of Commerce has said that China can export two hundred million pairs of socks to change a plane.

It looks sad, but actually China is a beneficiary. We couldn't build a plane at that time, but at least we could change it to a plane.

Once international trade is blocked, international demand is weak, we can not change to "aircraft" or no one wants our socks, and China's economy will be paralyzed.

After the economic crisis, China wants to take the path of domestic demand, but it is obvious that so far, domestic demand continues to grow with limited space.

The United States is seeing that China's lifeline is exported, so we want to hit the acupoint and destroy the biggest carriage, which is the forty year of reform and opening up.

However, will China's textile industry, which is nearly half of its trade surplus with China, be kicked back?

China Cotton Association believes that although the regional trade rules formed by TPP may have an impact on China's textile market, but its influence is limited, China, as the second largest economy in the world, along with the continuous development of the "one belt and one way" construction, the signing of the Sino Korean and Sino Australian FTA, the negotiation of investment agreement between China and the EU, and the expansion of the Shanghai Free Trade Zone pilot, and the steady progress of the "regional comprehensive economic partnership" negotiations and the construction of the Asia Pacific Free Trade Area. China has shown a deep, high-level and omni-directional foreign trade opening pattern, which can hedge the marginalization effect brought by TPP.

Especially in the "one belt and one way" strategy and the Central Committee's efforts to develop Xinjiang's textile industry.

Together with the promotion of employment, the pfer of cotton textile industry in 2015 showed a trend of more than a few. The textile enterprises that have successfully built their factories overseas have begun to return to Xinjiang to test the water. If the domestic cotton quality and price can be close to the international market in the next few years, China's textile industry can still return to its peak by solid industrial foundation, perfect industrial chain advantage and rich management experience.