Chinese garment businesses feel heat of crackdown

13 Jul '09

2 min read

In early June this year, the Russian government burned 22 containers of children's wear and children's shoes owned by Chinese merchants under pretext of harmful substances. In September last year, Russia had seized 7000 containers of Chinese goods in a bid to stop illegal imports.

The 7,000 containers are still in the custody of the Russian government and goods are owned by thousands of small and big Chinese businesses and the biggest worry among these traders is that the government is once again likely to destroy the goods under some or other pretext.

According to the forecast of Wenzhou Chamber of Commerce, at least 100 enterprises in Wenzhou may go bankrupt, if these goods were destroyed and will also lead to thousands of people losing their employment, if the Russian government was take action on these 7000 containers.

Since a long time, cheap Chinese goods have brought a certain impact on the local Russian domestic markets and have caused strong discontent amongst Russian businessmen about Chinese goods and Asian and particularly the Chinese traders are harassed due to the same.

In September last year, the Russian government seized a number of Chinese goods under the pretext of non-lawful customs procedures. Since June this year, the Russian government has increased its efforts and on June 10, 22 containers of Chinese goods were destroyed, sending an important signal.

Russia also claimed that it would close the market. According to Li Dong, a researcher from Russian Graduate School of China Institute of Contemporary International Relations, internal struggle within Russia is another important reason for the decision to close down the market.

If the Cherkizovo market is closed down it will lead to 45,000 Asian immigrants shutting down their business, a majority of whom are Chinese and who are also illegally staying and doing business in Russian territory. It is these illegal immigrants who will feel first the heat of the crackdown on the market.

Fibre2fashion News Desk - China

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