Chapter 538: Big Trouble

But as New Year's Day 2018 approaches, it's not all good news for fast-rising countries.

After several rounds of noisy fighting, the EU finally came to an agreement. Instead of taking a step back, they chose to retaliate, "If the Chinese can force us to bow our heads through trade sanctions, I can't think of much dignity left in Europe in this situation." "In the midst of a quarrel of entangled interests, the French trade representative, Victor. Lu Laier's meaningful words caused everyone to ponder.

When everyone agrees to fight back instead of backing down, there are not many options left, these gentlemen are not stupid, and what China cares about most is naturally their favorite choice.

Before China lifted its restrictions on the import of cars and luxury goods to Europe, the EU announced that it would impose 100% punitive tariffs on Chinese textile and toy products imported into Europe. As soon as this measure was introduced, it basically cut off the hope of Chinese textile and toy products to be exported to the EU.

Because even under extremely favorable and low tariff conditions, cheap textile and toy products exported to the EU can only make a small profit, and after such a high tariff increase, Chinese products will no longer have a place in the EU.

The upcoming Western Christmas and New Year Golden Sales Week, with the European Union's measures, closed the door to Chinese textile and toy manufacturers.

"Minister Fang, the EU has now officially begun to take punitive high tariff measures on our textile and toy products, and now the textile and toy distributors within the EU have called to inquire and urge our enterprises to perform the supply contract according to the original contract price, but under the current punitive tariff conditions, the company is completely unable to perform these contracts, according to this situation continues, or in a few months, there will be a large-scale bankruptcy in the textile industry, This is a fatal blow to our country's textile industry, and the Textile Association pleads with the Ministry of Commerce and Trade to resolve this trade dispute through negotiations as soon as possible. ”

Ms. Hu Kaili, the chairman of the Textile Association, who is also the owner of Kaili Clothing, a well-known textile manufacturer in China, was anxious to find Fang Donglai, Minister of Commerce and Trade, after receiving the news.

She can't help but be anxious, more than half of the company's sales for the EU market, although this year is almost over, but Christmas and New Year's gold sales week almost accounts for more than one-sixth of the annual sales, missed this opportunity, even if the other party dealer does not claim, the company's products can not be sold this year, that is also the company can not afford, this batch of almost 100 million euros of clothing, has long been customized in accordance with the EU market preferences to complete the production, at this juncture can not be sold, that will not become no one cares about inventory?

Apparel products according to the quarterly speed of upgrading, completely can not afford to delay even a week, so the textile association for the world's various markets policy attention is not worse than the Ministry of Commerce and trade, basically the European Union announced that Chinese textiles and toys products punitive high tariffs as soon as the news was announced, the members of the textile association immediately convened an emergency meeting to negotiate.

This emergency meeting counted the existing contracts for domestic exports to the EU, discussed the impact on the members of the association in the coming year, and soon came to a startling conclusion that if measures are not taken soon, most of the textile enterprises engaged in export trade to the EU in the entire industry will go bankrupt!

Although the domestic textile industry and the toy industry produce products of low grade, the annual profits are quite limited, but the scale of these two industries is huge, the absorption of employment is very considerable, according to incomplete statistics, now there are about 20 million industrial workers in the whole industry, at least one-third of the annual shipments to rely on exports, of which the EU almost accounts for about half of the total exports, in other words, almost one-sixth of the textile production depends on the EU market!

The toy production and sales enterprises are also labor-intensive, employing more than 4 million people, 80% of the annual output value depends on exports, about 4 percent is sold to the EU market, equal to one-third of the entire industry to rely on the EU market to survive, the EU to use this trick, can be said to be in the middle of the Chinese side, for the Chinese textile and toy industry is simply the bottom of the kettle, very vicious.

With the fragile capital chain of the domestic textile and toy industry chain, if the EU export enterprises go bankrupt, it will inevitably involve a large number of upstream and downstream manufacturers, so I am afraid that one-third of the relevant domestic manufacturers will be engulfed in the flames of this trade war, bankruptcy and closure!

In the face of this grim situation that threatens the industry, the association must not sit idly by. So they soon prepared a detailed data report, and the chairman of the association, Ms. Hu Kaili, went to the relevant state departments to solve the problem, because the matter was completely beyond the ability of the members of the association to solve.

What can Minister Fang Donglai do now, he frowned, and said to Hu Kaili: "We can fully understand your feelings, now the Ministry of Commerce and Trade has sent a delegation headed by Vice Minister Shi Xiaoqiao to the EU for consultation, but this issue is very complicated, please Ms. Kaili go back to do a good job in the work of the member units of the association, and maintain the stability of the production and operation of each unit." ”

"Minister Fang, now that the members of the units have been fluctuating, I'm afraid it will be difficult to stabilize" Hu Kaili said to Minister Fang with a bitter smile, "Don't talk about other companies, my Kaili clothing has now been forced to stop working, and now there are more than one billion goods in stock, which are ready to be sold to the European Union, according to the plan and contract, it should be shipped from this week, but in this situation, how do you let me ship?" ”

Fang Donglai silently said that China's textile goods originally relied on small profits and quick turnover, and the tariff was raised by 100 percent, and after entering the EU to pay the tariffs honestly, it was completely uncompetitive in price, so in this case, the forced delivery, how to transport it over, and how to transport it back.

Fang Donglai is in charge of the Ministry of Commerce and Trade, how can this situation be unclear.

"Ms. Kelly, frankly speaking, now this situation, is no longer our Ministry of Commerce and Trade can solve, yesterday we have reported to the Prime Minister, I believe that the State Council will soon hold relevant meetings, some meetings may also require your textile association and toy association personnel to participate, please prepare more materials, then these situations in the relevant meetings hosted by the State Council will be clearly explained, so that the national leaders can make decisions." Fang Donglai knows the seriousness of the problem, but today's situation is indeed not something that can be solved at his level, so he is not afraid to confess to Hu Kaili.

Hu Kaili can be in charge of the famous Kaili Group and the textile association, of course, it is not a simple person, she has a relatively clear understanding of the ins and outs of the EU's trade retaliation, in addition to not knowing the promotion of several national bigwigs behind it, Hu Kaili knows that this trade dispute is caused by Dongfang nuclear power, and then promotes the domestic restrictions on the import of EU cars and luxury goods and triggers this trade war.

The textile and toy industry is typically lying down and getting shot this time.

From Minister Fang's tone, Hu Kaili heard Minister Fang Donglai's tendencies, and was more sympathetic to his own industry, or he would not have hinted that he and others were preparing materials to complain at the upcoming relevant meetings of the State Council, everyone is a smart person, if it is not clear when it comes to this, then Hu Kaili will really live in vain.

"Thanks to Minister Fang's concern, we will try our best to prepare the most detailed materials to report to the relevant leaders of the State Council, so that the leaders can understand the real situation of the textile and toy industry at the first time. Now that it involves the job opportunities of millions of employees, I would like to ask Minister Fang to pay more attention to it and try to report the situation to the above. ”