The Sino-US friction escalates, the textile and apparel industry is affected again

On Tuesday, the US government suddenly requested the Chinese government to close the Consulate General in Houston within 72 hours and evacuate all personnel. More than 4 hours later, a fire broke out in the Chinese Consulate General in Houston. Witnesses said they saw a small amount of smoke rising from the courtyard of the embassy and smelled burning paper. Based on the principle of sovereignty in foreign affairs, the Chinese Consulate General in Houston did not allow relevant personnel from the Houston fire and police departments to enter. Subsequently, the spokesperson of the US State Department Morgan Ortagus gave 'reasons' in an e-mail statement, saying that the closure of the Chinese Consulate in Houston was for the so-called 'protection of American intellectual property rights and American private information.' In response, the Ministry of Foreign Affairs of China notified the US Embassy in China yesterday morning that China decided to revoke the permission for the establishment and operation of the US Consulate General in Chengdu, and put forward specific requirements for the Consulate General to stop all business and activities. The Chinese spokesperson said that the US unilaterally provoked the incident and suddenly requested the Chinese side to close the Consulate General in Houston, which seriously violated international law and the basic norms of international relations and the relevant provisions of the Sino-US consular treaty, and seriously damaged Sino-US relations. The above-mentioned measures by China are a legitimate and necessary response to the unreasonable actions of the United States. They conform to international law and basic norms of international relations, and conform to diplomatic practices. The current situation between China and the United States is something China does not want to see, and the responsibility rests entirely with the United States. We once again urge the U.S. side to immediately revoke the erroneous decision to create necessary conditions for the return of bilateral relations to normal. This year, the United States has adopted various measures to suppress China in military, regional geopolitics, science and technology, and personnel exchanges. Especially the recent series of 'honey juice' operations, people have to think that Sino-US trade may deteriorate again. On July 16, it was reported that the United States was considering a total ban on the persons concerned from traveling to the United States. According to relevant people familiar with the matter, the Trump administration is considering a total ban on CCP members and their families from traveling to the United States. In response, Chinese Foreign Ministry spokesperson Hua Chunying said on the 16th that if the report is true, it can only make people feel 'sad' for the United States. On July 20, the Bureau of Industry and Security (BIS) of the US Department of Commerce announced that 11 Chinese companies have been added to the 'Entity ListThis will cause these companies to face new restrictions on access to products of American origin. It is reported that the 'entity list' is an export control regulation established by the United States to safeguard its national security interests. Before obtaining the license, the exporters of the United States shall not help the companies on these lists to obtain any items governed by these regulations. The Entity List is a tool used by the Bank for International Settlements to restrict the export, re-export and (in the country) transfer of items controlled by the Export Administration Regulations (EAR) to individuals (individuals, organizations, companies) who reasonably believe to be involved or pose significant risks , Engaging in activities that violate the interests of U.S. national security or foreign policy. Additional license requirements apply to exports, re-exports, and (domestic) transfers of items subject to EAR to listed entities, and the availability of most license exceptions is limited. Simply put, the 'entity list' is a 'blacklist'. Once on the list, it actually deprives related companies of trade opportunities in the United States. Some professionals have analyzed that even if customers are included in the 'Entity List' by the United States, as long as the subject of the transaction is not within the restricted area, they can continue to cooperate with such customers without being affected by the entity list and export controls. At the same time, the Office of the United States Trade Representative (USTR) recently announced a new list of exemptions from additional tariffs. This is the seventh batch of products excluded from the US$300 billion tariff increase list. It involves cotton knitted women’s gowns, boot racks, plastic shells, foam pads, baby clothes and baby sleeping bags, men’s and women’s bathrobes, bathrobes, blankets, and ovens. A total of 64 products including gloves. In addition, this week the United States requested the closure of the Chinese Consulate General in Houston, which caused tensions in Sino-US relations again, and was even called the Sino-US 'Cold War' by some media. This is an unprecedented escalation action taken by the United States against China, further pushing Sino-US trade relations to a negative side. At present, with the rapid development of my country's economy and the growing middle class, the ability to accept and digest mid-to-high-end textiles and clothing has been greatly enhanced, alleviating the dependence on the US market and the impact of policy changes. However, textile and apparel companies need to be vigilant and deploy emergency measures as soon as possible to prevent them from being affected by Sino-US trade frictions again.