A Letter from CCA to CICCA

Source:China Cotton Association  Date: 24/April/2020

24 April, 2020

 

Cliff White

CICCA Chairman

Georges Toby

CICCA Vice-Chairman

 

Dear Sirs

 

The year of 2020 started with the unexpected COVID-19 which spreads all over the world, disrupts the life routines, brings to a halt to economy activities of many nations and overshadows the global economy as a whole. As a consequence, both China and the global cotton and textile industries are hard hit by it. When the textile factories in China resumed their operations after the well control over the virus, the fast spreading epidemic in the rest of the world slowed down economic activities there, reducing dramatically the consumption on textile and apparel worldwide.

Reports from mills in CCA‘s Council meeting on 17th April all complained that at a time like this many international brands and retailers chose to suspend, reject, depreciate or cancel their orders, at the same time, new orders were rarely seen or with offered price far less than the cost. Many domestic cotton and textile companies are now standing at the fringe of shutting down; the ripple effect has already been felt by cotton merchants and growers, increasing risks of the industry from the very source.

Responding to this unprecedented challenge, Chinese government issued a series of tax and financial policies to support companies, which are finding their own way out through cutting down spending and exploring profit potentials. Meanwhile, CCA has suggested the government to include cotton and textile industry into the essential sectors and improve its supportive measures to companies of all levels.

Cotton and textile industry chain is a long one with companies from sectors different while interests shared. At this very difficult time, retailers, textiles and merchants, no matter which part in this value chain, everyone shall reflect deeply on how to survive this by cooperation with upstream and downstream partners, instead of taking unreasonable and irresponsible actions that could result in the disruption to trade order.

CCA is committed to work with CICCA and cotton organizations from other countries to uphold the principles of contract sanctity. Under the current extreme circumstances, CCA asks its member companies to adhere to mutual understanding, trust and future cooperation potential, to remove the obstacles of contract fulfillment by finding mutual acceptable solutions, thereby avoiding disputes, arbitration and defaults. We firmly believe only cooperation brings win-win result, with hope we shall overcome difficulties at present.

 

Sincerely,

 

Wang Jianhong

Vice President & Secretary General

China Cotton Association


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