In June 2017, my country’s textile and apparel exports reached US$24.35 billion, a year-on-year increase of 1.4%. In the first half of 2017, the cumulative export volume was US$124.27 billion, which was the same as the same period last year, showing a stabilizing trend. However, with foreign trade stabilizing and recovering, my country’s textile and apparel industry also faced severe trade frictions in the first half of the year.
According to the latest industry statistics, my country’s textile industry encountered a total of 8 new trade remedy cases and 2 early warning cases in the first half of the year, involving the United States, India, Colombia, Turkey and other countries and regions. The number of cases increased by 33% compared with the same period last year. The newly filed case involves nearly US$430 million. The early warning cases involved nearly US$1.07 billion.
According to data released by the Trade Remedy and Investigation Bureau of the Ministry of Commerce, in the first half of this year, Chinese products encountered 37 trade remedy investigation cases from 15 countries and regions, including 28 anti-dumping cases, 4 countervailing cases, and 5 safeguard measures. The total amount involved is US$5.3 billion. From a country perspective, India filed 12 cases and the United States filed 11 cases, ranking the top two. From an industry perspective, 10 cases were filed against light industrial products, making it the industry with the largest number of cases filed. Although the number and amount of trade remedy investigations faced by my country have declined compared with the same period last year, they are still at a high level since the global financial crisis.
India and the United States are the main sponsors
According to analysis by industry insiders, the trade remedy cases encountered by my country’s textile industry in the first half of 2017 showed several outstanding characteristics: First, India once again entered a period of high incidence of cases, with 6 of the 8 cases in the first half of the year coming from India. The anti-dumping investigation of man-made fiber fabrics in the early warning case involved a total amount of US$950 million, which had a greater impact on corporate exports; second, the US case resurfaced. In recent years, most cases initiated in the textile and clothing field have been in developing countries. However, in the first half of this year, the United States launched an anti-dumping investigation into my country’s polyester staple fiber. It was the first original investigation into the textile and apparel industry after a lapse of six years. The development trend behind it deserves attention. Third, chemical fiber products are concentrated in cases. Among the 10 cases, 8 cases targeted chemical fiber products, namely: 2 cases for polyester staple fiber, 1 case each for man-made fiber, polyester filament yarn, acrylic fabric, viscose filament, partially oriented yarn (POY), and high-strength yarn. In particular, polyester staple fiber products are the hardest hit area by trade remedy investigations.
Investigation into double anti-counterfeiting of polyester staple fibers in the United States. In June 2017, the United States launched a double-reverse investigation into China’s polyester staple fiber. Among them, anti-dumping investigations are targeted at China, India, South Korea, Vietnam, and Taiwan, while countervailing investigations are only targeted at China and India. The dumping investigation period is from October 1, 2016 to March 31, 2017; the subsidy investigation period is throughout 2016. In 2016, the total export volume of the products involved in the case to the United States was approximately US$80 million.
Anti-subsidy warning for Indian man-made fiber fabrics. In February 2017, India’s DGAD received letters of complaint from four industry associations, applying to launch a countervailing investigation on man-made synthetic fiber fabrics exported from my country. The name of the product complained of is synthetic polyester, nylon, viscose filament yarn or mixtures thereof. The subsidy investigation period is from April 2015 to September 2016. According to customs data, the total value of the products exported to India during the investigation period was close to US$950 million.
This appeal mainly targets the subsidies provided to enterprises by my country’s central and local governments, preferential loans issued by banks, and preferential export credit policies. Affected products include synthetic filament yarn woven fabrics, mesh tulle and mesh fabrics, knitted fabrics and crocheted fabrics, etc. The impact range is large and many companies are involved.
Türkiye’s anti-circumvention investigation. On February 25, 2017, Turkey launched an anti-circumvention investigation into some oriented polyester filament yarn (POY) imported from China, India, Indonesia, Malaysia, Thailand, Vietnam, Taiwan, China and other countries and regions. The tax number involved is 540246, which belongs to the category of synthetic filament yarn products. In 2016, my country’s exports of products involved in the case to Turkey totaled US$135 million, accounting for 7% of my country’s textile and apparel industry’s total exports to the country.
In 2008, Turkey began to impose anti-dumping duties on polyester yarn products, and ruled to continue the levy after the expiration of the five-year tax period. The complainant believes that in order to avoid paying anti-dumping duties, my country’s industry has exported large quantities of directional polyester yarn. It continued to cause damage to the country’s industry, so an anti-circumvention investigation was launched. Most of the companies involved are concentrated in Tongxiang City, Zhejiang Province, and sporadic companies are involved in other areas of Zhejiang, Fujian, Jiangsu and other places.
Diversified use of trade remedy measures
The reason why India has become the main country initiating trade remedy cases is closely related to its economic development pattern in recent years. Industry analysts believe that man-made fibers were not the main product of the Indian textile industry in the past, but now man-made fibers have developed into the second largest textile industry in India after cotton spinning. Under the current situation where the Indian government is vigorously developing the domestic textile industry and attracting foreign investment, its industry is also developing rapidly and constantly improving. There is a strong domestic voice for seeking protection for industrial development. Therefore, my country’s response to the situation is not optimistic and the industry needs to work closely. Pay attention and treat with caution.
Judging from the form of trade remedy cases, there is a further trend of diversification. In addition to traditional anti-dumping investigations, double-counterfeiting cases and anti-circumvention cases are also involved. In the past, countries that initiated trade remedy cases mostly used anti-dumping or countervailing measures alone, but now they use them simultaneously. In other words, discover��Countries are becoming more mature in using trade remedy means, and developing countries are also becoming more mature in using the above means in terms of laws, legislation and government agencies, which puts forward higher requirements for the professionalism of our industry’s response.
The response capabilities of Chinese enterprises are becoming increasingly mature
Although the industry has been experiencing frequent trade remedy cases, the good news is that in recent years, as the four-body linkage response mechanism led by the Ministry of Commerce has become increasingly mature, companies have become more enthusiastic in responding to lawsuits. “After encountering a case, some companies can quickly prepare export data, industry information and other response materials under the guidance of the industry, actively participate in non-damage defense, and are familiar with handling cases.” Industry insiders commented on the companies’ response to the lawsuit. positive performance in the process.
With the active efforts and cooperation of all parties, the case was controlled to the extent that it would have the least impact on the exports of Chinese enterprises. Relevant industry agencies actively contacted importers and downstream industries to establish a defense alliance, so as to strive for favorable results to the greatest extent.
In mid-July, the non-harm defense work in the U.S. polyester staple fiber anti-counterfeiting investigation case was officially launched. The China Chamber of Commerce for Import and Export of Textiles submitted a defense opinion on damage to the U.S. International Trade Commission (ITC) through an attorney, and entrusted a U.S. lawyer to attend the hearing. The next step will be to collect industry information and prepare the next round of defense opinions.
The anti-subsidy early warning case on man-made fiber fabrics in India has been completed after holding an early warning meeting, the Trade Remedy and Investigation Bureau of the Ministry of Commerce went to India for inter-governmental consultations, and my country’s industry agencies negotiated and communicated with industry organizations such as the Indian Garment Manufacturers Association. This case has not yet been filed. According to the latest news, the investigation agency may change the form of the investigation, and the industry continues to pay close attention to the next progress.
In the Turkish anti-circumvention investigation, after the industry held a response coordination meeting, 2 groups and a total of 8 companies participated in the non-harm defense of this case. At the end of June, the China Chamber of Commerce for Import and Export of Textiles officially submitted the first round of no-harm defense opinions. The industry is currently actively contacting downstream industries in this case and applying for a hearing. Is India and the United States causing trouble? my country’s textile and clothing exports stabilize amid frequent trade frictions
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