apparels
Chinese Economics Thread
- Thread starter Norfolk
- Start date
apparels
The stupid part of this is one, there are many other buyers around the world and two Xinjiang can easily export there goods to all over China given the size of there market and the fact that there economy is open. If the US dollar goes to hell, how on earth will they even purchase goods overseas anyway. Trying to decouple in the middle of a pandemic is just plain dumb as this does nothing to help there economy, not when many clothing places are going bankrupt anyway not to mention that no one is in the mood to open a factory up in the USA what with the costs being high and Trump not even offering any really incentives other then screw China.
Trump isn't going to revive the US economy by doing this, he is going to totally destroy it as he seems to have run out of options
Even they can see the situation where if the USA goes down, China is the only path of survival, the USA has no future since while Trump can tell firms to leave China and go back to the US, He refuses to help them in doing so, nor does he offer anything in return
Most of the cotton in Xinjiang comes from the XJ production and contruction corp so the ban isn't difficult to enforce. That's true. China is still one of the major apparels manufacturers. China imports 2 millions ton a year and produce 5 millions ton a year domestic. It wouldn't be a problem in the long term to switch all American apparels import from China to foreign cotton but in the near term it would be chaotic and might force companies to seek foreign cotton and avoid domestic cotton. Although Chinese government has the tendency to stockpile a large amount of cotton for reserve and could decide to rebuild cotton reserve after years of depleting them.
manqiangrexue
Brigadier
That sounds very difficult to enforce. It's not going to be packages labelled "XJ production and construction corp." It could be shipped to anywhere in China and labelled anything. Companies that used this cotton to make apparel could claim it's cotton from anywhere, and it would be plausible because China buys a bunch of American cotton. So how would they figure it out unless they used satellite images to track shipment trucks 24/7? Even then, when the trucks enter buildings and other trucks leave buildings, they have no idea what was offloaded or loaded.
The US only requires reasonable suspicion of the use of forced labor(XJ cotton) to detain and withhold your products. That means most of the Chinese exporters would have their goods withhold at the ports til they provide evidence that they didn't use any cotton from XJ. Companies would be assumed of being guilty and would have the burden to prove their innocence.
Most major international companies such as Walmart would ask their suppliers to ensure no cotton from XJ and would hire third party auditors to ensure that the whole supply chain is clean. Basically, the US government outsources compliance and enforcement to companies who import the goods and fines and penalize extensively to intimidate companies by withholding goods at ports to ensure compliance.
D
Deleted member 15887
Guest
ASEAN+EU+Japan+South Korea+Africa are far bigger export markets. the US makes up only 20% of Chinese exports anyhow.