China’s textile industry is now facing a dilemma

With the beginning of this year the abolition of textile quota exports to the EU, a few days, the United States will also abolish the textile and garment export quotas, China’s textile and garment industry will enter a “no-quota” era. However, due to further expansion of the financial crisis and the ensuing reduced global demand caused by the industry are generally of the view that “no quota” I am afraid that little or no value, on the contrary will have to beware of foreign anti-dumping, countervailing and other trade containment.

The biggest problem is not less than the quota

Distance from January 1 next year, there just a week, perhaps the talk of the old quota export textile enterprises spend too much energy, but also perhaps the industry agreed that the “winter”, which may need some more long, for the 2009 delayed free and quota-free era, in the course of an interview with reporters, many textile and garment enterprises was very dull.

“We are now facing the biggest problem, not less than the quota, but U.S. and European markets to shrink the problem of insufficient orders, while Europe and the United States economic downturn, many large orders because of the risk of the reasons we did not dare take.” Dongsheng a large clothing business-related person in charge told reporters. In Shanhaiguan a staff told reporters that this year, the troubled textile and garment enterprises is not the problem of insufficient quotas, even a few years ago a period of tight quotas, quotas they have not become too great a burden, “but then after the lifting of the quotas do not to order, for an active role in enterprises limited. ”

However, some business owners to take a positive attitude toward the elimination of quotas, Shaxi a garment enterprises said that part of the loss to the neighboring countries of orders or shipments to the U.S. as the abolition of textile quotas for Chinese textile enterprises to return to the hands, “from long-term perspective, non-quota era of our textile enterprises or beneficial, after all, is only a temporary crisis. ”

Many small and medium-sized textile enterprises is to abandon the quota for export to the original goods to the domestic, in order to cash in the winter. U.S. Customs statistics show that as at December 10, U.S. 21 categories of textile products the average clearance rate was only 63.79 percent, and exports to shrink very serious. According to statistics, the first half of the year was restricted to 21 categories of textile and apparel exports to the U.S. quota of the average utilization rate of less than 20%. Industry analysts believe that the abolition of quota difficult to repeat itself in 2005 “blowout” in exports, the enterprise is not too great.

Containment of foreign trade rise

Although exports to the U.S. is about the abolition of textile quotas has not caused a positive response from businesses, however, the U.S. textile and apparel manufacturers have already started lobbying the Government to monitor imports of textiles from China. In this regard, the industry believes that textile exports to the U.S. in 2009 the elimination of quotas for domestic textile enterprises, there is little apparent benefit, on the contrary, the U.S. trade protectionists has been brewing for a number of restrictive measures on textile products in the winter in the industry, added a lot of variables.

It is understood that the recent series of United States and other countries introduced a series of measures against textile products, such as the United States on September 16 announced a new regulation “to improve the Consumer Product Safety Act” to require that all exports to the U.S. market in textiles and clothing products in 2009 from 2 started to comply with U.S. standards. In addition, China exported textile and garment industry for 6 years more than 20% growth in global textile and garment market, the average annual growth of only about 5%. China Textile Import & Export Chamber of Commerce statistics, from 2006 to play in July 2008, global demand for Chinese textiles initiated anti-dumping, special safeguard measures and other trade remedy measures to a total of 18, involving an amount of 540 million U.S. dollars.

In this regard, in Shanhaiguan relevant experts pointed out that with the financial crisis spread in Europe and America to take anti-dumping, countervailing and other trade measures, there is a growing trend, with some often encountered in the industry compared to anti-dumping, textiles lawsuit involving a relatively small, So deal with textile enterprises still lack experience, access to non-quota era, the textile and garment enterprises should pay special attention to those easily trigger trade frictions and the proper conduct of circumvention, as well as enterprises to organize in peacetime good exports and domestic sales record, just in case suffered when anti-dumping fill in the questionnaire can be a timely appearance.