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Reading News 4U: Ivanka Trump's merchandise supply chain in China shrouded in secrecy
Tuesday, September 26, 2017
VietPress USA (Sept. 26th, 2017): Can Trump attack North Korea and confront against China? Read this news from Independent to know the situation:
http://www.independent.co.uk/news/business/news/ivanka-trump-china-supply-chain-merchandise-tracking-data-us-presdient-first-daughter-a7967321.html
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Ivanka Trump's merchandise supply chain in China shrouded in secrecy
Identifying 90 per cent of companies involved in shipping Ivanka Trump's merchandise has suddenly got a little harder to crack
Since Ivanka Trump became an official adviser to her father,
public information about companies importing her branded goods to the US has
become harder to find.Information that once routinely appeared in private trade
tracking data has vanished; leaving the identities of companies involved in 90
per cent of shipments a mystery.
Even less is known about her manufacturers. Trump's brand,
which she still owns, declined to disclose the information.
The deepening secrecy means it's unclear who Ivanka Trump's company
is doing business with in China, even as she and her husband, Jared Kushner,
have emerged as important conduits for top Chinese officials in Washington.
The lack of disclosure makes it difficult to understand
whether foreign governments could use business ties to try to influence the
White House — and whether her company stands to profit from foreign government
subsidies that can destroy American jobs.
Such questions are especially pronounced in China, where
state-owned and state-subsidised companies dominate large swaths of commercial
activity.
"I don't know how much money she's making on this and
why it's worth it. I think it's putting our trade policy in a very awkward
situation," said Richard Painter, who served as chief White House ethics
lawyer for George W Bush, and is part of a lawsuit against President Donald
Trump for alleged constitutional violations.
Among the few publicly identified companies that shipped
Ivanka Trump goods to the US in the past, the AP identified one owned by the
Chinese government and another selected for special export subsidies — a
possible violation by China of global fair trade rules, experts said.
Ivanka Trump's brand doesn't make products directly. It
contracts with licensees who oversee production. AP asked Ivanka Trump's brand,
as well as its clothing, footwear and handbag licensees for supplier lists. All
declined to disclose them.
Abigail Klem, who manages Ivanka Trump's brand, said the
company does not contract with foreign state-owned companies, nor benefit from
Chinese government subsidies. However, she acknowledged that licensees might.
"We license the rights to our brand name to licensing
companies that have their own supply chains and distribution networks," Ms
Klem said in an email. "The brand receives royalties on sales to
wholesalers and would not benefit if a licensee increased its profit margin by
obtaining goods at a lower cost."
Michael Stone, chairman of Beanstalk, a global brand
licensing agency, said lower production costs for licensees would ultimately
benefit Ivanka Trump by freeing up money for marketing or lower retail prices,
both of which drive sales. "The more successful the licensee is the more
successful Ivanka Trump is going to be," Stone said.
In 2014, a Chinese province announced a three-year pilot
program to reduce export costs for ten local companies through insurance
subsidies and access to special funds.
One of them was Zhejiang Tongxiang Foreign Trade Group,
which shipped at least 30 tons of Ivanka Trump handbags to the US between March
2016 and February, according to shipping records independently maintained by
Panjiva and ImportGenius, companies that track global trade.
Details about implementation are unclear, but four trade
experts said they appeared to violate fair trade rules. "These are clearly
export subsidies," said Gary Hufbauer, a trade expert at the Peterson
Institute for International Economics in Washington.
Shipping records also show that from 2013 to 2015, 45 tons
of Ivanka Trump clothing were exported to the US by Jiangsu High Hope
International, which is majority-owned by the Chinese government.
The brand pledged to avoid such ties now that Ivanka Trump is
a White House adviser, but contends that its supply chains are not its direct
responsibility.
"That seems to be skirting the ethical commitment
pretty close or avoiding it all together," Mr Hufbauer said.It is unclear
whether the brand currently has any supply-chain links to foreign
government-owned or subsidised entities.
The companies that shipped Ivanka Trump merchandise to the
US are listed for just five of 57 shipments logged by Panjiva from March, when
she took on her White House role, through mid-September. US Customs and Border
Protection has not yet supplied the missing information to AP.
There used to be more visibility. In 2014, 95 per cent of
companies that shipped Ivanka Trump merchandise to the US were identified in
Panjiva's database.
Two licensees — G-III Apparel and Marc Fisher Footwear —
appear to have redacted information, according to Panjiva records. Neither
responded to AP's questions.
Chris Rogers, an analyst at Panjiva, said less than a
quarter of companies ask customs to withhold information. "A lot of
companies have said, 'yes there might be a commercial disadvantage, but we want
to be transparent,"' he explained. "'Why would we want to cover up
the fact that we're working with this particular company?"
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