What Will Be The Impact Of President Xi Jinping'S Visit To The US In September?

Chinese President Xi Jinping's upcoming state visit to the United States and his re meeting with President Obama are of great significance to both countries and the world, because the healthy development of Sino US relations is related to the future of the world.

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The latest news from Washington, before the visit of China's president Xi Jinping to the United States on Friday, China and the United States have been warming up the controversy over the fashion industry. Congressional legislators, President Obama and the Republican presidential candidate participated in the talks.

President Xi Jinping and his wife, Ms. Peng Liyuan, participated in the visit to the United States. On the same day, after attending the media conference of the White House Rose Garden, the president and his wife were able to dine with the president of the United States and others in the White House.

China is an extremely important resource country and exporter in the fashion industry, according to the US government.

As of July 31st this year, the number of textiles imported from the United States accounted for 38.7% of the total import value and was worth 42 billion 800 million US dollars.

In June this year, a spokesman for the United States stated at the WTO conference that China's large reserves of cotton increased the world's cotton prices, which had adverse effects on the global trade in cotton textiles. The textile and garment industry, the largest contribution rate of trade surplus, was not optimistic this year.

In the 1-7 month of this year, the export volume of China's cotton textile products was 14 billion 400 million US dollars, down 7.44% from the same period last year, and the import trade volume was 4 billion 900 million US dollars, up 2.68% over the same period last year.

In view of China's largest cotton consumption country in the world

When the consumption is reduced and the competition from foreign suppliers is increasing, the US Department of agriculture predicts that China's cotton imports will fall to its lowest level in 13 years.

The United States opposes the world trade organization's seven areas in February this year, including clothing,

China's cotton supply has caused controversy over the proposal of an export subsidy scheme for footwear.

President Xi Jinping's visit to the United States will be the most concerned issue for the domestic textile industry.

China is still the first big country to export counterfeit products to the United States, and the US government says it has prepared a series of measures to deal with China.

Stephen Lamar, executive vice president of the American Apparel and Footwear Association, said: "China's online market is developing rapidly. Counterfeit products are spreading on the Internet. Taobao is the market that we are very concerned about. Taobao has a lot of counterfeit products. This is indeed a problem.

Unless China can solve this problem effectively, China will hardly get real development.

He expressed the hope that President Obama could discuss fraud with President Xi Jinping.

In May, the French Open Cloud group, which owns luxury brands such as Gucci and parenicia, filed a lawsuit against Alibaba, accusing Alibaba of connivance in selling holidays and benefiting from it.

According to the lawsuit, Alibaba and its related organizations provide "market advertising and other necessary support services for counterfeiting and shoddy businesses to sell fake and shoddy products to American consumers."

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The depreciation of the renminbi and the strength of the US dollar are stirring up the profits of the global luxury fashion companies. Some companies will obviously benefit from it, while others will suffer a serious decline.

Some analysts believe that all luxury goods companies are sparing no effort in controlling prices and narrowing the global spread. The latest devaluation of the renminbi has made many Western luxury brands face a worsening dilemma.

Affected by the depreciation of the renminbi, the consumption trend of overseas Chinese tourists and overseas purchasing agents will be reduced, and the depreciation of the renminbi will make the strategic abacus of luxury domestic prices empty.

Us legislators hope that the renminbi will appreciate, which indicates that the renminbi has a pivotal position in the international financial market.

A US senator said, "we are worried that the recent devaluation of China's currency will lead to a competitive devaluation of the currencies in the Asia Pacific region, which will also affect the export problem of the United States".

The handling of the RMB exchange rate issue between China and the United States will also affect every luxury brand.

The Chinese government's anti-corruption measures and the rule of giving up gifts are making the Chinese rich more low-key.

Bain estimates that 20 top luxury brands will slow down the pace of opening stores in China, and a Chinese consumer survey by Hoogewerf estimates that in 2013, Chinese luxury goods spent 15% less on luxury goods than in the previous year.

LV, Gucci and Prada are losing their jobs. The leather goods category of the luxury goods giant LVMH's engine department is three years low. Once upon a time, sales in Asia accounted for more than 35% of the total sales of LVMH group.

Global

Everything that happens in the market today is often seen as the root and cause of each brand's performance. Of course, anti-corruption is a catalyst.

Some analysts pointed out that President Xi Jinping's visit to the United States may emphasize China's anti-corruption policy, because just before President Xi Jinping's visit to the US, China and the United States worked closely together with judicial enforcement and foreign affairs departments, and forced the 14 year old suspects of corruption and bribery to return to China.

This is the first time that the United States has repatriated publicly exposed "100 red Tong personnel" to China.

This also means that China's anti-corruption policy will continue, and the domestic luxury market recovery path is still bumpy.