This week, we were in Shanghai to talk about the Trans-Pacific Partnership (TPP) and doing business in Asia—as well as sign a MOU with the China Chamber of Commerce for Import and Export of Textile and Apparel (CCCT).
On March 14-15, USFIA was pleased to support the China & Asia Textile Forum, co-organized by China Chamber of Commerce for Import & Export of Textiles and ECV International and also supported by the Textile Association (India) and the Vietnam Cotton & Spinning Association, among others. The two-day conference brought together textile experts and researchers from around the world to explore the latest trends and technologies in the global textile industry.
The discussion focused on the current situation for the industry in China with sluggish global demand and rising costs. While Chinese exports to the U.S. continue to grow (although more slowly), textile and apparel exports are down for the rest of the world, especially to Europe and Japan. And the Chinese companies face greater competition from many suppliers, not just other Asian producers.
What is the outlook? Some Chinese companies said they expect 2016 to be even slower than 2015. But there is a focus to improve efficiency and productivity as well as initiatives for Chinese manufacturers to “go global” and expand manufacturing in low-cost regions.
USFIA President Julia K. Hughes spoke about TPP, a topic that remains of interest for the industry throughout Asia. Mr. Jiang Hui, the President of the China Chamber for the Import and Export of Textiles and Apparel, said that the industry expects that, in the short-term the TPP will have a negative impact on China. But that in the longer term, the TPP will encourage higher standards for Intellectual Property protections, and higher standards for environment and labor, which are part of globalization.
During the Forum, CCCT and USFIA signed a Memorandum of Understanding (MOU) to increase our interaction and to share information about the business and the economic outlook. We also will be scheduling meetings in China and the United States.
On March 16, joined our Premier Partner PwC for a customs and trade roundtable for the fashion retail sector. Experts from the PwC retail, tax and strategy areas talked about key issues for doing business in China. They provided lots of interesting information about the Chinese consumer and how they are shopping today. And for those on the compliance side, there was discussion about working with China Customs. Click here to download the presentations from the day.
As China remains critically important to our industry, USFIA has been thrilled to launch new events in China and Hong Kong in 2016, and we look forward to returning again soon to continue to connect with the industry in this important sourcing destination and retail market.