Textile producers in Zhejiang
Province are adjusting their development strategies after the
United States announced new limits on Chinese clothing imports on
Wednesday -- the second time in five days Washington imposed quotas
after complaints that Chinese imports were hurting US
companies.
"We are discussing the latest situation," said Han Licheng,
secretary of the Zhejiang Provincial Clothing Association. "Two
textile magnates rushed to my office for a closed-door discussion
after the US declared its decision."
The new batch of goods facing restrictions are men's and boy's
cotton and manmade fiber shirts, manmade fiber trousers, manmade
fiber knit shirts and blouses, and combed cotton yarn.
Shipments of Chinese textiles and apparel to the US surged after
the end of global quotas on January 1, and on Friday the US said it
was re-imposing quotas on three categories of clothing imports from
China, including cotton trousers, cotton knit shirts and
underwear.
In Wenzhou, a booming business center, about one third of local
enterprises are engaged in textile exports, of which one third
target European countries and the US, said Ni Xueshan, director of
the cotton textile branch of the Wenzhou Clothing Chamber.
Ni believed the quotas would mean that some producers will first
export textiles to a third country to evade quotas, increasing
their costs and making US investors, retailers and consumers pay
more.
He said the quotas might bring great pressure to the domestic
textile industry and that some small companies would face closure,
triggering more unemployment.
Jiang Guoliang, a manager with the Wobao Children Apparel
Company in Zhili, a township of Huzhou City, said that less foreign
businesspeople have come to the town since April this year.
Jin Changyi, general manager of the Jinqiu (Golden Globe)
Textile Company in the provincial capital Hangzhou, said, "It's of
no use blaming quotas or praying. The situation has already changed
and the only thing we can do is adjusting strategies to minimize
the impact the quotas will have."
His company exported about 300,000 to 400,000 pieces of cotton
and silk clothes each year, including 50,000 pieces to the US, most
of which were children's clothes.
"From the beginning of the year, we have received fewer orders
from Europe and the US," Jin said.
Some enterprises are planning to enlarge markets in the Middle
East and South America and increase the share of silk products
exports.
Xu Zhongping, sales manager of the Qiuyinong Company Limited in
Hangzhou, said "China's enterprises should not only focus on
quantity, but also work hard to improve quality."
(Xinhua News Agency May 20, 2005)