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End of US quotas may not improve exports
Jul '08
Reportedly, export quotas to the US are scheduled to be lifted by the end of 2008. However, experts believe that even then the current state of Chinese textiles is unlikely to improve.

According to Customs statistics, China exported over US $49.95 billion worth of clothes and relevant products in the first half of this year, representing a year-on-year growth of just 3.4 percent.

Among all countries and areas, the export value of Chinese clothes products to the US was only $6.37 billion, down 7.8 percent as compared to same period last year. The export value to Hong Kong also showed plunge of more than 20 percent to touch $5.19 billion.

Industry officials said that factors like RMB appreciation, high raw-material and production costs as well as other transportation and shipping charges have had a massive impact on textile exports. Export quotas are just minor restrictions and if and when they are lifted, it may not have any effect on the sluggish trend seen in exports in the last six months.

Sources say that the US authorities are also aware of the tough trade conditions and are not overly concerned about overflow of Chinese products in the markets after the quotas are lifted.

Fibre2fashion News Desk - China

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