Chinese textile & garment exports facing severe protectionism

28 Nov '11

2 min read

China's accession to the World Trade Organization (WTO) has created opportunities for the country's textile and garment sector exports, but it has also brought about imposition of protectionist measures by several countries.

When China acquired the WTO membership in 2001, it enjoyed about 16 percent share in global textile and garment exports. Gradually, this share increased to nearly 32 percent in 2009 and to about 33 percent in 2010, according to the WTO data.

Statistics show that China is facing the highest proportion of anti-dumping and other countervailing cases, which account for one-third of global cases in textile exports and one-half in relation to apparel exports. This shows that in recent years China is facing increasing instances of trade protection from other countries and regions.

Thus, the Chinese textile and apparel exports are facing unprecedented pressures owing to protectionist measures. This has led the exports to enter a phase of moderate growth, after having experienced a period of rapid growth after the liberalization of restrictive quota.

Over the period, the innovativeness and export quality of Chinese textile industry has improved greatly, and China's export pattern has changed from quantity-oriented growth into quality-oriented growth.

During the Eleventh Five-Year Plan period, China's textile exports grew by 45 percent in volume and 56 percent in terms of value. From 2008 to 2010, the value of Chinese apparel exports increased by 25 percent, in spite of a decline in quantity.

Moreover, there is a rise in the cost of China's domestic labour, raw material and energy. Thus, the "low-cost, high-growth" era of China's textile and garment industry has ended.

Fibre2fashion News Desk - China

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