Shengze Textile Enterprises Cautiously Treat Sino US Trade Frictions

Recently, the US dollar first agreed to restart economic and trade negotiations between the two countries. The US side said it would no longer impose new tariffs on Chinese exports. This news has more or less boosted confidence in Shengze's textile enterprises. The head of many textile trade companies said that although they are still cautious about the Sino US trade friction, they hope to restart the economic and trade consultations and bring good news.

Textile industry is a pillar industry in Shengze town. There are more than 2500 textile enterprises and more than 7000 business companies in the town. Since this year, with the escalation of Sino US trade frictions, Shengze's textile industry has been greatly affected, and orders are showing signs of decline. Pu Jianrong, general manager of Suzhou Mu Yang Textile Import and Export Co., Ltd., said that as China's largest exporter of textiles and clothing, the United States tariffs on Chinese exports to the United States will undoubtedly bring adverse effects to the export business of Shengze textile enterprises. "For example, if we export a piece of textile price of 100 yuan, the United States levy 25% tariffs, export textile prices will be raised to 125 yuan. This not only increases the cost of export trade, but also affects the volume of purchasers. He said.

According to Pu Jianrong's observation, Sino US trade friction has adverse effects on the upstream and downstream of the textile industry. On the one hand, the export volume of textile enterprises in Shengze has declined, resulting in a backlog of textile stocks. On the other hand, downstream demand is decreasing, and buyers' willingness to accept goods is not strong enough. Both sides are worried that the delivery can not be delivered on schedule, resulting in turbulence in the textile trade market. "With the escalation of Sino US trade frictions, there are many uncertainties in the textile trade market. As a result, textile and downstream enterprises' production and sales stamina is insufficient, which is not conducive to stable development of the industry. " He said.

Pu Jianrong frankly said that although the news of the resumption of economic and trade negotiations between China and the United States has boosted confidence in the development of Shengze textile enterprises and textile trading companies, many enterprises have been cautious about the Sino US trade friction for the time being. "Of course, we hope that the resumption of economic and trade consultations between the two countries will bring good news and hope that the market will get better and live. A stable trading market can ensure mutual benefit and win-win situation for both sides. Pu Jianrong suggested that Shengze enterprises should take part in professional textile exhibitions at home and abroad, boldly open up overseas markets such as Europe outside the United States, and do more in a broader market.

As a foreign trade service platform of Shengze Oriental textile city, Alibaba has a rich experience in foreign trade service. Gu Wei, head of the Shengze Office of the company, said that the most obvious impact of Sino US trade friction on Shengze textile enterprises is the decline in orders. "Since March, textile enterprises in Shengze have received a large number of foreign trade orders, but orders for this year have been significantly reduced." He said that the US tariffs on Chinese exports to the United States substantially led to overseas buyers' wait-and-see attitude towards whether to purchase Chinese textiles. Some buyers even went to find other suppliers, which had a certain impact on the textile industry in Shengze.

Gu Wei also optimistic about the resumption of economic and trade consultations between China and the United States. He believes that Shengze's textile quality is good and competitive in the international trade market. If the United States can cancel the previous tariff policy, many overseas orders will eventually return to Shengze.

Gu Wei believes that Shengze textile enterprises do not have to suffer too many negative emotions because of being blocked in the US market. The vast overseas markets such as Europe, South Asia and Southeast Asia deserve to be vigorously explored. "We hope that the Sino US economic and trade consultation can terminate the trade frictions between the two sides, and we hope that Shengze textile enterprises can develop a larger overseas market with excellent products and establish cooperative relations with more high-quality customers." He said.