Home / Knowledge / News / Textiles / Chinese textile subsidies grow to $10 billion
Chinese textile subsidies grow to $10 billion
25
Nov '08
On the eve of the expiration of quotas on Chinese textile and apparel products, the Chinese government has increased export subsidies to its textile industry by $10 billion, a 55 percent rise. The Chinese government action came shortly after China pledged to “reject protectionism” and defend “open markets” during the recent G20 Summit on Financial Markets and the World Economy. This action also followed the release of U.S. Government figures which showed that China had posted the biggest overall trade surplus in history with the U.S. while manufacturing job losses in the U.S. accelerated.

NCTO President Cass Johnson called on the Obama Administration and the new Congress to take tough actions against China's predatory practices. “By dramatically increasing subsidies just prior to the phase-out of quotas, China is throwing down a gauntlet that the U.S. government and the U.S. Congress must not ignore. At a time of international economic turmoil, the Chinese government is essentially bankrolling the destruction of the U.S. textile industry and the jobs of American workers.”

Johnson noted that Vice President-Elect Joe Biden spoke to the need for action last month in Charlotte, North Carolina when Biden observed, “This state's textile industry is getting killed not because our workers cannot compete, not because our products aren't the best, but because no one has been willing to stand up to China and nail them when they compete unfairly. We are for fair trade, not free trade.”

Last Thursday, China announced that it would increase a subsidy (called the “export tax rebate”) currently given to Chinese textile and apparel exporters from 14 to 17 percent. This move followed two similar increases already given to Chinese industry earlier this year, for an overall increase in the export rebate from 11 percent to 17 percent, or an increase of 55 percent since July 2008. As a result, Chinese exporters have seen export subsidies from the Central Government increase from $19 billion to $29 billion in just the last four months.

Johnson called on the Obama Administration to act swiftly against China by self-initiating trade remedy cases against China, if China surges once quotas are removed on January 1st, 2009. Johnson noted that President-Elect Barack Obama committed last month to a textile monitoring program directed at China and illegal trade activities. Johnson also urged the Administration to consider taking China to the WTO regarding its textile subsidy schemes, noting that there is strong evidence that China is in violation of Article V of the WTO Agreement on Subsidies and Countervailing Duties.

Johnson explained that the U.S. Congress is also monitoring the Chinese imports, clarifying that the Ways and Means Committee under Chairman Rangel instituted its own monitoring system in September this year and has the authority to self-initiate safeguard cases as well.

Johnson urged the Congress toquickly pass legislation allowing U.S. companies to defend themselves and their workers against Chinese currency manipulation, noting that China has reneged on promises to steadily appreciate its dramatically undervalued currency. “In November, Americans sent a signal that they want tough enforcement and a fair playing field in international trade.” China stopped allowing its currency to appreciate in July.

Must ReadView All

Apparel/Garments | On 22nd Mar 2017

Amazon India introduces 'A-Z GST Guide' programme

Amazon India has introduced a programme called 'A-Z GST Guide' to...

Textiles | On 22nd Mar 2017

Dyeing textiles with bacteria

As an alternative to toxic synthetic dyes, scientists are exploring...

Courtesy: BCG

Apparel/Garments | On 22nd Mar 2017

Consumption in India to touch $4 trillion by 2025: Report

Consumption in India is likely to triple to $4 trillion by 2025 as...

Interviews View All

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search