What Impact Will TPP Have On China'S Textile Industry?

Recently,

(TPP) negotiations concluded.

After 5 years of negotiation, the process of TPP was very confusing, but eventually TPP reached a unified view. Those outstanding issues, such as rules of origin, market access and trade enforcement rules, seemed to have been solved.

What impact will TPP have on China's textile industry?

The reaction of some enterprises is that the share of exports will be reduced, and the relevant government departments will see that industrial pfer will be even more severe.

Among the provisions of TPP, the most concerned clause is zero tariff.

Once the trade between Member States begins to impose zero tariffs, it means that the world's major textile and garment buyers, such as the United States, Japan and Canada, are also China's main export destination countries, and will increase the share of procurement from TPP member countries, which will definitely affect China's export share.

Some enterprises predict that with the implementation of TPP, a large number of domestic textile and garment processing plants will be closed.

In fact, this is not the last day.

although

Or it will be closed, but that does not mean that the enterprise will go bankrupt, but that the enterprise will pfer the factory to other countries.

Why pfer? The rule of origin rules established by TPP is the most direct reason.

Although the text has not yet been published, it is a general consensus in the TPP circle that the rules of origin are identified.

At that time, TPP members will have to choose to import cotton and yarn from the member countries in order to enjoy the benefits of zero tariff export, so as to reduce or even stop importing these products from China.

The United States will undoubtedly be a big winner in cotton exports.

Then, where will the enterprises be pferred?

Looking at the 12 member countries of TPP, Vietnam is most likely to attract the pfer of textile and garment industry.

In fact, Vietnam has been eager to start negotiations since the start of TPP.

At the International Textile Forum held at the beginning of this year, the Deputy Secretary General of the Vietnam Textile Association has confidently stated that Vietnam will become the most important global supply chain investment destination for the textile and garment industry.

TPP has brought new opportunities to Vietnam, and Vietnam textile enterprises have gained more opportunities for development.

Vietnam Textile Association expects that after the signing of the agreement, Vietnam's textile industry will achieve export target of 30 billion US dollars by 2020.

But calm down, Vietnam's dream is not so fast.

Although Vietnam has absolute advantages compared with other TPP members, Vietnam has its own shortcomings of imperfect industrial chains.

First of all, China exports about 300 billion US dollars of textile and clothing every year, while Vietnam only has about 10000000000 dollars.

In 2014, the global trade in textiles and clothing was US $1 billion 72 million 230 thousand, TPP countries.

The total volume of clothing trade amounted to 1776 trillion US dollars, accounting for 16.56% of the world's total.

For the United States, China is still the dominant supplier. China's clothing products exported to the United States account for 42.14% of the total market in the United States, textiles account for 36.54%, yarn accounts for 20.43%, and manufactured goods account for 67.11%.

Vietnam is the second largest apparel supplier in the United States, with a market share of 10.67%. It is also the fourth largest fabric supplier in the United States with a market share of 7.23%.

Secondly, Vietnam has to raise its export volume from the current US $about 10000000000 to US $30 billion, and we need to improve the manufacturing capacity. This is a long process. It is a process that needs gradual change, and it will not happen overnight.

Therefore, even if TPP is implemented, it will not have a huge impact on China's exports.

Nevertheless, enterprises should have a stronger sense of crisis.

Under the spur of TPP, enterprises must make more efforts to pform, innovate and speed up internationalization, so as to ensure that orders are not completely pferred, leaving room for themselves.

Of course, we must soberly see that the textile and garment industry is not a highly sophisticated industry, and it can be replicated very strongly. Vietnam does need time to improve, but with the great interest driving, its improvement time may be far shorter than we imagined.

Even if TPP is not a scourge, the impact on China's textile and garment industry must not be underestimated.