Textile row has farmers caught in the middle
14/10/2005 17:29
As a cotton grower, Zhang Jishen knows little about international trade rows,
but he has had the feeling that the imminent harvest in his 3-hectare cotton
field is no passport to his fortune this year. Sensing this will affect his
very livelihood, Zhang said he has been concerned with the sixth round of
textile talks with the United States in Beijing, 250 kilometers from his home
village in Zhufutun township of Zhengding County, Hebei Province. To his
disappointment, the two-day talks ended yesterday without reaching an
agreement. "If the US continues its restrictions, my cotton will sell much
cheaper and my 30,000 yuan (US$3,700) of investment in the cotton field will go
down the drain," he said. Marketing was not a problem for Zhang, a contracted
cotton grower for several export-oriented textile firms in southern China.
Today, however, many textile companies, bogged down by the US and EU
restrictions on Chinese textile exports, have had to cut orders and shrink
production. Zhang, 52, said a cotton field was no gold mine even when cotton
sold well in recent years. "Each hectare could yield more than 10,000 yuan, but
costs on cotton seeds, fertilizer and cotton-picking laborers added up to 9,000
yuan per hectare," he said. His neighbor Ma Xiu'e is also worried. "If cotton
doesn't sell well this year, I'm afraid my two kids will have to drop out of
school," she said. Cotton growing Cotton-related industries involve about
26 million people in Hebei Province that neighbors Beijing, says Yang Shanxing,
president of Hebei Provincial Cotton Association. He estimates China's cotton
acreage is about 5.3 million hectares this year and its output is expected to
reach around 6 million tons. "Nationwide, cotton growing, textiles and
related industries involve up to 200 million people. The US and EU restrictions
will undoubtedly affect their livelihood, directly or indirectly," Yang
said. According to a latest China-EU deal reached on September 5, Chinese
textiles blocked at European ports were to enter the European Union again as of
September 14, ending a trade row that had items from lingerie to pullovers pile
up in customs warehouses. China Textile Industry Council has predicted the US
restrictive measures will cut China's textile export to the United States by
US$2 billion to US$3 billion since this year, says the council's spokesman Sun
Haibin. For Zhang Jizhen and many expert cotton growers in China, there is no
other way out of poverty. "I'm all too ignorant about growing soy beans or
corn," he said. "Our country does export textiles to the United States, but
the States also sells mountains of goods to China, doesn't
it?" (Xinhua)
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