China to talk with partners on textiles
China’s Ministry of Commerce said yesterday that it would step up its dialogue with major trading partners to ensure a smooth transition when the last of the quotas on its textile exports expire at the end of this year.
The United States and European Union both negotiated growth caps on exports of Chinese textiles after a surge in sales following the end of a global system of textile quotas at the start of 2005.
The US limits end this year, and China reiterated it didn’t want a repeat of the so-called “bra wars” at the expiration of the quotas.
“In order to ensure stable growth in the textile sector and other labor-intensive industries, we will step up our dialogue and communication with relevant countries and ensure a smooth transition, to create a good external environment for Chinese textile exports,” the ministry said.
Chinese textile exporters have been hit hard by the global economic slowdown, with clothing exports in the first nine months rising just 1.8 percent from a year earlier.
Concerned about job losses particularly in labor-intensive industries, the government has raised export tax rebates for textiles and other products, the second such move in three months for the textile sector.
Despite the slowdown in shipments, there are signs that China could face resistance from its trading partners as it props up textile exports.
Tags: export, exports, tax, Textile