Microsoft Power Point ATMI Presentation on China Threat to United

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?


3/18

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



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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



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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%


10/18


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5% -

32%


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%


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

Documents

Microsoft Power Point ATMI Presentation on China Threat to United