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Expert: Textile export will not skyrocket
(CRIENGLISH.com)
Updated: 2004-12-29 10:03

Although the textile export quota system will be removed early next year in the world market, Chinese experts don't predict a substantical growth of Chinese textile exports, as the country's domestic demand is on a fast increase. CRI's Li Peichun has the details.

China is the biggest textile manufacturer in the world, leading many foreign media outlets to conclude that China will benefit most from the textile export quota removal.

However, Gao Yong, vice chairman of the China National Federation of Textile Industry doesn't agree with this. He says China's textile exports will not see a huge increase due to the huge domestic market.

"Although China's textile industry is extremely productive, domestic needs should be the first concern. After China's reform and opening-up, people's living conditions greatly improved, and there has been a huge increase in textile demands. Now two thirds of our textile products are for the domestic market."

He adds that the national textile authority has recently announced that an export tax will be imposed on textile products to optimize the export structure. As a result, textile exports will be influenced and some manufacturers will have difficulty surviving the fierce competition if they only concentrate on the low price of their products.

"We will strengthen monitoring and establish a precaution system for export goods. Measures will be taken for goods with prices that fluctuate substantially. In addition, textile manufacturers will face stricter control on product prices and quality."

Gao Yong predicts, in the short-term, China will see some textile export growth starting from next year. But in the long run, the growth rate will stay in line with the average level of the past few years.

Up till now, most developed countries have setup a textile import quota system on developing countries, stipulating the type and quantity of the goods imported every year. Imports not included in the quota face much higher tariffs.

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