Chinese textile exports to soar despite curbs

03 Dec, 2005

Chinese textile exports are likely to grow 19.2 percent in 2005 to $116 billion, only a bit slower than last year despite curbs on shipments to the United States and the European Union, Xinhua news agency said on Friday.
China's textile exports in 2004 rose 21 percent to $97.3 billion. Increased investment and the adoption of new technologies had enhanced the competitiveness of Chinese textile firms and fuelled exports, Xinhua cited the China National Textile and Apparel Council as saying.
Textiles make up about 15 percent of total Chinese exports.
China hammered out agreements with the United States and the European Union earlier this year to limit its flow of textile exports after the end of a global quota regime on January 1 unleashed a flood of goods into world markets.
Imports of pullovers and men's trousers from China into the 25-nation European Union leapt by more than 400 percent in the first quarter of this year from the same period in 2004.
Last month, Washington reached a deal following months of grinding negotiations to set growth rates for Chinese clothing imports at 10 percent in 2006, 12.5 percent in 2007 and 15 percent in 2008.
The agreement was broadly similar to one reached by the European Union in June and revised in September.

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