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Trade frictions hurt China's textile industry
Sep '11
Chinese textile industry has been amongst the most hit by trade frictions, according to a Commerce Ministry official.

Last year, China encountered maximum number of anti-dumping investigations for the 16th time in a row.

From 2008 till June this year, China has been entangled in 313 trade-related investigations, which include 35 cases against textile firms of the country involving US$ 1.9 billion, Ministry of Commerce's Bureau of Fair Trade for Imports and Exports' official Li Zengli said.

China accounts for around one-third of the world's overall textile trade volume, and is one of the world's leading textile exporting nations.

According to the China National Textile and Apparel Council Vice President, Gao Yong, next to the chemical engineering industry, textile industry is the second-most badly hit sector due to trade frictions, after the country earned the World Trade Organization membership in 2001.

In spite of such frictions, over the past one decade, the country's export grew at a higher pace at an average rate of 25 percent per annum, he said.

Gao opined that while the trade investigations initiated by three of the country's leading export destinations namely, the United States, Europe and Japan will likely reduce during the next five years, those from developing countries like Brazil, Peru and India would rise.

He expressed hope that there would be a fall in anti-dumping and anti-subsidy investigations against the country, but the trade frictions which stem from technical barriers would rise.

Gao recommended that the domestic textile firms should boost their competitiveness through skill up-gradation and by developing their own labels.

Fibre2fashion News Desk - China

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