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By Du Xiaoli (chinadaily.com.cn)
Updated: 2007-08-11 15:28

China's textile industry will face a more challenging international trade situation as Sino-EU and Sino-US textile agreements mature by the end of this year and the next year respectively, according to a report from the Economic Information Daily.

EU and US have the obvious intent of imposing anti-dumping and anti-subsidy measures on China’s textile products. Such measures will cause significant damage once implemented, said insiders.

Related readings: Textile machinery imports enjoy preferential duties Tax rebate cut changes textile export strategy Textile profit shrinks on tax rebate slash

Impacted by many factors including various trade barriers abroad, Chinese enterprises suffer from many defects such as lack of self-owned brands, inferior position in the international division of labor, and weak capability in making profit in the industrial chains.

Market shares lost by China's textile products in the US market in 2006 were picked up by other Asian countries. Although the Sino-US agreement is favorable for domestic US industries, the implementation of the agreement has not changed the trend of shrinking production in the domestic textile industry in the US, said Lu Sheng, a textile trade researcher from Donghua University, after analyzing authoritative statistics.

In addition, some developing countries such as India, Peru and Colombia took restrictive measures including anti-dumping on China’s textile products, according to Cao Xinyu, vice-chairman of the China Chamber of Commerce for Import and Export of Textiles.

Great uncertainties will exist in textile exports after the year 2007, predicted Cao. Many enterprises advised the relevant government departments to deal with the situation after the agreements become mature in advance.

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