Ministry of Commerce
spokesperson Chong Quan announced Sunday that export duties will be
imposed on certain textile products.
It came in response to concern from trading partners over the
effects of lifting their quotas on Chinese imports in the new
year.
The duty will be collected on the basis of quantity rather than
value, so as to encourage higher quality goods, said Chong.
The move is one of eight measures being taken by the ministry to
ensure a smooth transition to a quota-free environment.
Textile exporting information will also be released in a timely
manner, and enterprises will be encouraged by government to export
in an orderly and self-disciplined way.
"We will encourage Chinese enterprises to invest abroad, and
provide them with policy support in their foreign investment,"
Chong said.
All quotas restricting textile and clothing trade between World
Trade Organization (WTO) members are to be eliminated by December
31 in line with the Agreement on Textiles and Clothing.
Some have predicted that Chinese textile goods, supported by
cheap labor costs, will swamp the world market and force others
out. About 72 textile and apparel groups from 36 countries signed
the Istanbul Declaration urging the WTO to extend quotas to the end
of 2007.
Pressure has also been put on the government to cap textile
exports. Grant Aldonas, the US Commerce Department's undersecretary
for international trade, visited China in September to seek an
agreement on voluntary caps.
The EU urged Premier Wen
Jiabao to exercise "moderation" from January once quotas are
lifted. Wen met with officials during his EU trip last week.
The US and EU are expected to abolish quotas on a further 126
items by 2005, which will account for 60-61 percent of their total
textile imports.
Liang Xing, president of the Shandong Weiqiao Textile Company,
said the export duties are welcomed, noting that it will reduce
disputes and encourage better value goods.
"I prefer a steady growth rate rather than the fear of
uncertainty because of a dispute," he said.
At a closed-door meeting on the post-quota period in October, it
is reported that 70-80 percent of the 400 company representatives
present supported stricter industry management.
The WTO rules allow members to limit imports on the grounds that
their local markets would otherwise be disrupted, and many expect
this provision to be used against Chinese imports once quotas have
been removed.
The US agreed to consider applications made in November by
members of its textile industry to impose safeguard measures on
imports of Chinese-made cotton pants, shirts and sheets. Chinese
officials believe that this would be an abuse of the WTO
regulations.
(China Daily December 13, 2004)