Pace of textile exports slows
16/5/2005 11:41
The surge in China's textile and clothing exports to the United States and
the European Union, following the abolition of quotas, has been curbed to some
extent thanks to China's series of self-imposed measures. The country's
Jiangsu Province, a key exporter of textiles, reported a slower pace in textile
exports in the first quarter from a year-on-year growth rate of 39.2 percent in
January to 11.5 percent in March. Figures showed the province's growth in
textile exports to the United States dropped from 117.8 percent in January to
63.3 percent in March while the increase to the EU also dropped to 17 percent in
March after pronounced rises in January and February. Yunnan Province in
southwest China registered exports of 6.76 million articles of clothing in the
first quarter, around 3 million less than that from the same period last
year. And exports of 32 products decreased 70 percent on average owning to
newly-added export taxes levied on them. Statistics from the Ministry of
Commerce showed that China's exports of textile and clothing totaled US$22.4
billion in the first quarter, up 19.1 percent, but 5.6 percentage points less
than the growth rate over the same time last year. Commerce Minister Bo Xilai
said last week in Paris that China's efforts to curb the dramatic increase in
exports of textiles and clothing had borne great fruit. On January 1, an
international textile quota system expired, leaving producers in the United
States and the EU to face a wave of imports from China, whose manufacturers
benefit from cheap labor and huge economies of scale. Both the EU and the
United States are alarmed over the surge in Chinese textile and clothing imports
and the EU, arguing the surge might disrupt their markets, has launched an
investigation into nine products as the first step towards imposing
measures. But Chinese experts said the surge in Chinese textile exports was
inevitable after the lifting of the quotas imposed by the United States and EU,
which held back Chinese exports for so long, said the experts. The increase
was also a result of changes in international trading rules and the low prices
derived from an adjustment of textile export structure and a sufficient
competition in the world market after the quota era, they said. In order to
soften the shock wave and achieve balanced trade, the Chinese government has
taken voluntary measures, including adding a textile export tax, strengthening
self-discipline among textile producers and exporters, curbing investment in the
sector, encouraging big textile companies to invest abroad. During a meeting
with EU "troika" of foreign ministers on Thursday, Premier Wen Jiabao stressed
that China will take further economic measures to ensure the healthy,
sustainable growth of the sector, despite the fact that self-imposed measures on
textile exports have borne positive results.
Xinhua
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