The US Currency Bill Will Trigger A Heated Debate In The Textile Industry, Experts Say, Or Speed Up Industrial Pfer.

October 12th, the United States

Many export processing enterprises say that the US Congress, in order to pfer domestic contradictions, will be mainly China's manufacturing enterprises as the object of pressure, so that they feel angry.

This move will be a sword for many domestic production enterprises to hang on. Once implemented, many enterprises will be unable to support and close their businesses.

Xiao Senlin, chairman of Dongguan's Hon Yi Dai toys, said that although the bill has not yet become a reality, it may have changed in the boycott and negotiation of our government.

However, if it becomes a reality, many enterprises will make far-reaching decisions, because the profits of the current enterprises, which are processed and exported to the United States and the European Union, will be less than 10%. According to his understanding, punitive tariffs will always be about 30%, which is unbearable for the manufacturing industry.

He Weichang, general manager of Ming Chi company, who runs garments, believes that once the United States implements punitive tariffs, domestic producers have two choices. First, the implementation of roundabout exports through Vietnam and Hongkong is to take those markets that are not subject to punitive tariffs as pfer stations. This is troublesome, but the feasibility is relatively strong; two, it is a direct escape from China to open production in other countries, but this method is not suitable for every enterprise. If the two methods are not selected, it will only be closed to a large extent.

"As long as it is punitive."

Jiang Lin, director of the Department of Finance and taxation of the south of the Five Ridges Institute of economics, Zhongshan University, said: "this problem is indeed very stressful for Dongguan's manufacturing industry and even for domestic export processing enterprises. According to my previous studies, punitive tariffs are generally between 20% and 80%, which is almost fatal to the small manufacturing industry, because the current Dongguan enterprises are mainly OEM export processing, the general profit is less than 10%, and it is very difficult to have a big breakthrough."

"Once it becomes a reality, it will be worse for many domestic enterprises.

It is not ruled out that a considerable number of enterprises will choose to leave China and start production in Southeast Asia or other countries and regions without punitive tariffs.

Another option is to pform and upgrade as soon as possible, or to do domestic sales, or invest more in R & D and increase profits.

Jiang Lin believes that even if the United States does not take this move this time, domestic enterprises will still face this difficult problem for a long time under the pressure of RMB appreciation.

Therefore, the government's policy of accelerating pformation and upgrading in the early years is undoubtedly correct.