Tariffs impact U.S. apparel companies, consumers: expert
admin • September 27, 2018 • 2446
Customers choosing sneakers sold in Stadium Goods | REUTERS
U.S. tariffs on imports from China will not only impact companies but also the consumers said an expert in an interview with China Global Television Network in Beijing on Tuesday.
Sara Hsu is an associate professor of economics at the State University of New York at New Paltz. She said it was not clear what percentage of the tariffs the companies would pass on to the consumers but it would definitely impact the consumers.
“It’s definitely going to impact the consumers in terms of higher cost as well as the companies. So there might be a split in terms of the company taking part of the hit and passing part of cost on to the consumers as well. And starting from January 1, the tariffs will go from 10 percent to 25 percent. So that’s a really significant increase,” said Sara.
China is the largest supplier of textiles and apparel to the U.S. market, accounting for about 40 percent of American imports in the sector, according to the statistics of the United States Fashion Industry Association (USFIA).
The industry relies on sourcing from China to provide American consumers with affordable and varied choices. But the tariffs will impact the multinational companies in the U.S. in the industry, said Sara.
“A lot of the American multinational firms are producing their goods overseas. So that’s why the tariffs on exports from China are going to impact the American multinational companies. And these multinational companies would like to move to a different place, especially given the tariffs that just kicked in. But it’s really hard for them to do,” said Sara.
She added that there would be a high cost for the companies to move and set up shops in other countries with a level of development and have low wages.
It can take up to five years to move from China to another country, Sara said. The situation hasn’t happened yet, but a lot of companies are not reassuring to the U.S. instead of relying on automation in order to produce their products because American labor costs so high. — Reuters
MANILA, Philippines – The Armed Forces of the Philippines (AFP) is seeking to further strengthen its naval and aerial assets following the series of uncoordinated passages of Chinese warships in the country’s waters.
AFP Western Mindanao Command spokesperson Maj. Arvin John Encinas said they have already filed a proposal to intensify naval operations in their area after several Chinese ships were spotted passing through Philippine waters without notifying local authorities.
“Nagsubmit ng proposal na palakasin pa ang naval units dito sa area ng WESMINCOM upang sa ganun nga upang ma-address ang issues particularly dito sa maritime domain natin as far as security is concerned,” he said.
(A proposal has been submitted seeking to strengthen naval units in the WESMINCOM area in order to address the issues, particularly in our maritime domain as far as security is concerned.)
The AFP earlier reported that at least five Chinese naval ships sailed through Sibutu Strait in Tawi-Tawi without prior coordination.
Based on their monitoring, five Chinese ships with bow numbers 998, 964, 195, 853 and 536 had been seen navigating the area between July and August.
The AFP said that aside from the said period, they have also spotted Chinese ships passing through the channel without permission since February.
The military said the vessels ignored radio communications from Philippine patrols.
The Sibutu Strait separates Sulu archipelago from Borneo.
Although considered an international sea lane where foreign vessels have the right of innocent passage, customary maritime law requires warships to coordinate with the coastal state beforehand.
The military said these ships could not claim innocent passage as they took a curved course and not a straight line.
“These previous months mayroon na tayong namomonitor na warships ng China kung kaya’t tuloy-tuloy po ang ginawang monitoring at patrolling ng ating Navy vessels at the same time, ‘yung ating Coast Guard diyan sa Sibutu Passage diyan natin nakikita lagi itong mga warship ng China,” Encinas said.
(These previous months, we have monitored Chinese warships in the area prompting continued monitoring and patrolling operations by our Navy vessels, at the same time, our Coast Guard in the Sibutu Passage where Chinese warships were spotted.)
Encinas added they have also informed the military national leaders on the monitored incursions to engage with their counterparts on the issue.
MANILA, Philippines – Several senators on Monday slammed Chinese Ambassador to the Philippines Zhao Jianhua over his remark that Filipino workers in China might be suspected of being spies.
At a Committee on Foreign Relations Organizational meeting, Senator Aquilino “Koko” Pimentel assured the Chinese envoy that Filipinos in China are not spies but are there to earn a living.
“Let me assure China, there are no Filipino spies in China. Kaya wag silang mag-alala. Ang mga Pilipino po na nasa China ay para po sa pagta-trabaho,” he said when asked for his comment on the issue.
Defense Secretary Delfin Lorenzana earlier expressed concern over the location of the Philippine Online Gaming Operations (POGO) hubs near military camps, saying these Chinese-dominated casinos could be used for espionage purposes.
In response to Lorenzana’s remark, Zhao reportedly told Presidential Spokesperson Salvador Panelo that they may also be inclined to look at Filipino workers in China as spies.
For Senator Risa Hontiveros, the Chinese Ambassador’s statement could be considered a threat.
“Ito ay maituturing na banta sa buhay at kabuhayan ng ating mga kababayang OFW sa Tsina. It is a veiled threat in response to our simple and reasonable desire to strictly regulate Chinese POGO operations in the country and ensure the country’s national security,” Hontiveros said.
“Our OFWs are not spies. They have no history of espionage. Filipinos abroad are valued both for their skill and unique blend of hard work and care. They pose no threat. In fact, in China, our workers are employed in areas that are nowhere near military and security facilities. To insinuate that they could be committing espionage is not only insulting but plainly false,” she added.
He added that Lorenzana is a competent official and his job is to advise authorities on a matter of security.
“He has nothing but good intentions. We should defer to him,” he said.
Drilon further stated the possibility that POGO workers could be used for information gathering is not a remote possibility.
“It’s convenient when there is a need for it. Why should we leave that chance unchecked?” he said, adding that he supports Lorenzana’s proposal to move POGO hubs farther away from military camps.
Hontiveros also said the Lorenzana did not accuse Chinese workers employed in POGO hubs as spies, but merely pointed out the proximity of the firms to military camps which can be exploited by unscrupulous people to undermine the country’s security.
The senator also recalled Lorenzana’s point that Chinese firms are mandated by the Chinese government to assist in intelligence collection for their government.
“Foreign workers, including Chinese workers, who fully comply with our laws and respect the rights of Filipino workers are welcome in our country. We demand the same from our OFWs working in and hosted by foreign countries. However, our country also reserves the right to ensure the safety of its citizens and protection of its state secrets,” Hontiveros said.
To address this issue, Hontiveros said there should be a thorough review of all Chinese POGOs near military installations and camps, adding that the defense department “must make a comprehensive appraisal and provide necessary proposals.”
She also suggested for stricter regulation of the POGO industry to ensure that revenues are monitored, taxes are paid and domestic facilities are not used to commit crimes.
Hontiveros added that there should be pressure on the Chinese government to commit more to work closely with the Philippine authorities in regulating the entry of illegal and undocumented Chinese workers into the country.
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