The trump administration announced that it would impose tariffs on US $50 billion worth of goods imported from China every year, and restrict China's investment in the US science and technology industry, thus opening the curtain of a Sino US trade war.

Based on the results of '301 investigation', USTR released a list of Chinese goods to be subject to tariff. The list covers industries such as aerospace, information and communication technology, robotics and machinery, and includes about 1300 independent tariff projects. The proposed list of taxable products will cover China's export of US $50 billion, with a proposed tax rate of 25%.

Although textiles and clothing are not included in the list, the 58 page list contains the vast majority of equipment types required for textile production and processing. According to the preliminary statistics, it is involved in spinning, double twisting, loom (with shuttle and without shuttle), warp knitting machine, knitting circular machine, knitting hosiery machine, embroidery machine, printing and dyeing equipment, non-woven finishing equipment, etc. in addition, it also includes a variety of spinning machine accessories, such as weaving shuttle, jacquard equipment accessories, weaving machine accessories, etc.

China's textile investment in the United States mainly uses the cost advantages of cotton resources and low-cost electricity of the United States for spinning and weaving processing. The finished products are exported to a third country or shipped back to China. Therefore, it is likely to be affected by the export of some relevant textile equipment driven by textile investment in the United States.

In order to safeguard China's own legitimate rights and interests, the Ministry of Commerce of China issued a notice on the imposition of tariffs on some imported goods originating in the United States. The Chinese government, in accordance with the foreign trade law of the people's Republic of China and other laws and regulations and the basic principles of international law, will impose tariffs on agricultural products, automobiles, chemicals, aircraft and other imported goods originating in the United States, The tax rate is 25%, involving the amount of China's imports from the United States in 2017 of about $50 billion.

It mainly involves some textile chemical fiber raw materials, textile chemical raw materials, textile dyeing and chemical raw materials, including: 52010000 uncombed cotton, 14042000 cotton linter, 29261000 acrylonitrile, 39019090 other primary shape ethylene polymer, 39100000 primary shape polysiloxane, 39081011 polyamide-6, 6 chips, 39072090 polyether with other primary shapes, 39089010 aromatic polyamide and its copolymer, 39089020 semi aromatic polyamide and its copolymer, 39089090 other polyamide with primary shapes, 34021300 non-ionic organic surfactant, etc.

At present, the world's two largest economies have launched a tit for tat trade war. At present, they have imposed tariffs on each other's $50 billion worth of goods.

At the time of preparation for a new round of China US economic and trade consultation, the trump administration announced that it would impose tariffs on about US $200 billion of Chinese products from September 24, with a tax rate of 10%, and will rise to 25% from January 1, 2019. It also said that if China takes retaliatory measures against American farmers or other industries, it will immediately start the 'third stage' and impose tariffs on about $267 billion of Chinese products. Why did you decide to start with a 10% tax rate and eventually rise to 25%? Trump administration officials said the aim was to give U.S. companies 'more opportunities to find alternative supplies and adjust accordingly.'. China's response was to impose tariffs on US goods worth $60 billion. If both measures come into effect, almost all American goods to China will be subject to tariff restrictions.

As the largest application field of China's non-woven fabrics, health care is also the main driving force for the growth of China's spunbond and Spunlaced non-woven fabrics. What will be the impact in the Sino US trade war? And how to deal with it?

In recent years, the RMB has continued to depreciate by more than 8%, and the cost of imported raw materials has continued to rise for China, a big importer of chemical and other bulk commodity raw materials. As the Sino US trade war becomes more and more intense, the RMB exchange rate may fall another 15% in the next year.

For raw materials such as bulk commodities, the price of materials mainly dependent on imports will rise, and the pressure of cost rise will be transmitted to downstream industries, including fluff pulp, sap and other products. Recently, the United States announced that it plans to increase the tariff rate of about 200 billion US dollars imported from China from 10% to 25%, including sanitary napkins, diapers, paper pulp, packaging paper, special paper, household paper and paper products. If the manufacturers mainly serve the domestic market, the devaluation of RMB will not bring down the price of raw materials. On the contrary, due to the cost of imported raw materials, it may lead to the price rising instead of falling.

For the medical industry, the main impact comes from disposable non-woven medical products. Due to the rising price of raw materials such as PP particles and pulp, the cost of medical products with non-woven as the main raw material will also increase. However, due to the locking of bidding price or market competition, it is difficult to raise the price of dealers or medical institutions in the domestic market, so the profit of medical product manufacturers is empty There will be pressure on both ends of the value chain. For foreign trade enterprises, they are faced with tariff adjustment to enter the U.S. market, which will affect the competitiveness of domestic enterprises in the U.S. market.

For the fierce price rise, the internal digestion of enterprises is not a long-term solution. According to the market dynamics, manufacturers should also increase product prices, adjust them reasonably and control them within the range accepted by users. At the same time, enterprises need to adjust the supply channels of raw materials and increase the proportion of domestic procurement on the premise of ensuring quality. And through technological innovation to enhance the added value of products, improve product quality and material utilization, reduce the level of energy consumption, improve the excellent rate of products. In addition, for the development of new products and new markets, to meet the personalized needs is also helpful to enhance the competitiveness of enterprises to overcome difficulties.

In order to cope with the current trade friction between China and the United States, so that foreign trade products will not be blocked outside the U.S. market due to tariff barriers, Chinese enterprises can consider taking the following measures:

【1】 Adopt reasonable tax avoidance measures

Use the loopholes in the tax regulations and import raw materials to avoid China's identity of origin. Due to the Sino US trade frictions, the United States aims at products with China's origin status. Chinese enterprises can also make use of China's non preferential rules of origin, adjust the supply structure of raw materials, and use a certain proportion of imported raw materials and spare parts (China's non preferential origin stipulates that the percentage standard of China's original goods is 30%, i.e. manufacturing with imported raw materials plus The value of finished products needs to be increased by more than 30% in order to obtain the Chinese origin identity), so that the products can not meet the Chinese origin standard, so as to avoid the Chinese origin identity of products.

It can also transit goods to the United States through countries that have established free trade zones with both China and the United States. So that the goods can enjoy preferential tariff treatment for both exports to the transit country and to the United States via the transit country.

【2】 Set up branches, production lines and offices abroad

To establish factories in the United States by direct investment, so that the products can obtain the local origin identity, or to establish factories in countries with low production costs of establishing free trade zones with the United States, so that the products can obtain the origin identity of member countries of the free trade zone, so that the products can enjoy preferential tariff treatment and export to the United States.

The key to setting up a factory for overseas investment is to make good use of the non preferential rules of origin and relevant preferential rules of origin of the United States, so that the products can be purchased from raw materials to the arrangement of production processes, and even the nature, name and use of the products can meet the standards of the original goods of the United States or the member countries that establish the free trade zone with the United States. Especially when imported raw materials are used, the 'substantial change' standard must be met.

In addition, when using the rules of origin of the United States, one of the important criteria can not be ignored: cumulative criteria. Since most of the rules of origin under the FTA signed by the United States adopt cumulative standards, it is possible for Chinese enterprises to purchase raw materials at low cost in the FTA.

【3】 Seek help from trading partners

For those enterprises that work closely with us trading partners, foreign trade companies can actively ask us trading partners to put forward their own demands to the US government and industry associations to safeguard the common interests of both sides. You can also turn to the American Bar Association, which usually has extensive experience in trade wars, to get their technical support.

【4】 Avoiding the risk of exchange rate fluctuation

In order to reduce the risk of exchange rate fluctuation as much as possible, we should lock the exchange rate for settlement when receiving orders. On the one hand, we should actively increase the strength of design and development, and make good use of quality design to increase the viscosity of products and users. We should attach great importance to and do a good job in exchange rate risk avoidance, closely follow the trend of exchange rate, prevent the risk of exchange rate fluctuation, use RMB as much as possible in trade settlement, and avoid trade risk through settlement currency.

【5】 Develop diversified trade

In order to minimize the threat of potential risks, multi-point layout, decentralization of customer resources, diversification of trade, and not putting eggs in one basket are necessary.