Chinese textiles will then enter the “no-quota” era

With the Sino-US, China-EU textile memorandum expires in 31, the Ministry of Commerce since January 1, 2009 will no longer apply to the U.S. 21 categories of textile export quota management and monitoring of exports to the EU bilateral eight categories of textile exports license management, which means that Chinese textiles will then enter the “no-quota” era of global free trade.

However, indications are that the financial crisis has led to weaker external demand, the long overdue “no quotas” will be difficult to ease China’s textile enterprises suffered external shocks, and with the financial crisis on the economic impact of the global entities further release, trade protectionism is likely for China’s textiles in the global free trade setting up new obstacles.

China National Textile Industry Council spokesman Sun Huaibin in an interview that the global demand for textile products currently in recession and a relatively sharp decline in the state, even if the United States the lifting of the quotas, China’s textile exports will not appear similar to the 2005 blowout growth , worried that the elimination of quotas on textiles from China after a surge in imports and have a devastating impact on the U.S. market that can not be justified.

Due to lack of demand this year, China’s textile exports to the U.S. quota utilization rate is not high. Foshan Textile Import and Export Co., Ltd. Chiao Lee frankly, general manager of the company’s exports this year than the same period last year declined by 2 / 3. Europe and the United States market to shrink, the majority of enterprises in recent years the amount fell to its lowest level in history, some companies even before the third quarter of this year to apply for the quotas are not exhausted.

As the fourth quarter of the textile enterprises have not received enough orders, coupled with Europe and the United States economy in the short-term prospects of recovery, many people within the industry is expected in 2009 the textile enterprises will be “a rigid one-year” consolidation of the overseas market the share of domestic demand with the excavation will be the greatest challenge.