Microsoft Power Point ATMI Presentation on China Threat to United
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Transcript of Microsoft Power Point ATMI Presentation on China Threat to United
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8/8/2019 Microsoft Power Point ATMI Presentation on China Threat to United
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United Textile Industry MeetingJune 10, 2003
China: How Big A Threat?
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China How Big a Threat?
Review: China Growth in Quota De-
Controlled Categories
Review: Chinese trade in similarproduct areas
Why the China edge?
What can be done about it?
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ATMI Analysis:
Decontrolled Apparel Categories
ATMI analyzed Chinese growth into US
market in all 29 apparel categoriesremoved from quota control on January1, 2002
Key point: First time China is
competing head to head without quotaswith everyone else Vietnam,Bangladesh, India, Mexico. . .
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Average Price Per Square Meter
Pre and Post Quota Removal
2001 2002 Change
China $5.79 $3.24 - 44%
Rest of
World $3.55 $3.47 - 2%
29 apparel categories removed from quota control
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Imports in Square Meters (mil)Pre and post quota removal
2001 2002 Change
China 142 554 + 412
Rest ofWorld 1,439 1,238 - 201
29 apparel categories removed from quota control
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Imports in dollars ($ mil)Pre and post quota removal
2001 2002 Change
China $824 $1,792 +$967
Rest ofWorld $5,104 $4,303 - $801
29 apparel categories removed from quota control
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China Growth: Sensitive Categories
Imports from China have gone up anaverage of 600 percent in sensitive
decontrolled categories over the pastyear!
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Chinas Share of Apparel
Removed From Quota in 2002
59%
77%
31%
9%
0%
100%
2001 2002 2003 2004
In first 15months,
China gainedimport shareat a rate of 6
percentagepoints aquarter
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Sensitive Categories - ATMI Safeguard
Request
10% -
78%
Change inChinas
share overpast 15
months
Luggage: 20% average tariff
-50%-54%-48%-58%-100%
0%
100%
200%
300%
China Mexico Thailand Philippines Dominican
Rep
664%
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5% -
32%
Sensitive Categories - ATMI Safeguard
Request Change inChinasShare
Over 15Months
Brassieres: 17% tariff
-27% -17% -5% -43%
308%
-100%
0%
100%
200%
300%
400%
China Mexico Haiti Dom Rep Taiwan
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10% -
42%
Sensitive Categories - ATMI Safeguard
RequestChange in
ChinasShare
Over 15months
Gloves: 20% average tariff
-47% -65%-48%-18%
291%
-100%
0%
100%
200%
300%
China Sri Lanka Taiwan Bangladesh Guatemala
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Here is a list of all the major textile andapparel exporters to the U.S. except one:
BelarusNew ZealandEcuadorEstoniaSweden
IrelandBelizeDenmarkSloveniaMoldova
EstoniaSwedenMoroccoAustriaMadagascar
SwazilandGreeceSwitzerlandCzech RepSyria
FijiHungaryFinlandUkraineQatar
Turkmenistan
Brunei
Poland
Kenya
Oman
Maldives
Argentina
Saudi Arabia
Romania
Mauritius
Bulgaria
Luxemburg
Peru
Netherlands
Mongolia
Singapore
South Africa
Uzbekistan
Lesotho
Jamaica
Australia
Jordan
Bahrain
Haiti
NepalColombiaBelgium
NicaraguaSpainUAE
RussiaBurmaFrance
United KingdomPortugalEgypt
JapanMacaoMalaysia
BrazilCosta RicaVietnam
IsraelGermanySri Lanka
Dom. Rep.El SalvadorPhilippines
Hong KongTurkeyHonduras
BangladeshIndonesiaThailand
TaiwanIndiaKorea
PakistanCanadaMexico
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The one country that is missing
China increased its exports of
textiles and apparel to the U.S.more than every other country in
the world combined.
China increased its exports by aRECORD 2.8 billion square
meters. 96% of Chinas increasewas in quota de-controlledcategories.
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Chinas Share of U.S. Imports
80%
70% 67%
11%16%
53%
95%
0%
100%
Bicycles Lighting Toys XMAS
Dec.
Hsehld.
Appl.
Textiles Apparel
While Quotas arestill in Place
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Why is China Unbeatable?
Chinas currency, which is pegged, is
estimated to be 40 percent undervalued.This gives China an enormous artificial costadvantage
Over 50% of Chinas textile sector and 25%of apparel sector is state-owned andsubsidized
Unlimited labor supply: China needs to findjobs for 15 million new workers a year
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Chinas Illegally Pegged Currency
60
160
98 99 0 1 2 May 03
Peso
Chinese Yuan pegged at 8.3 since 94
Yen
Euro
estimated to be 40% undervalued
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What Can Be Done?
1. US government to effectively use the WTOtextile safeguard & support its use
2. US government to remain steadfast in itsnegotiating position and allow NO TPLs inCAFTA
3. Chinese Currency Manipulation: USgovernment to pressure China tofloat its currency