'Reduce dependence on US & EU markets' – Experts

24 Apr '09

2 min read

There is a huge gap between the overall trade China conducts with the US, EU and its Asian neighbours. Over the years, China's textile and garment export markets are mainly concentrated in EU, US and Japan and account for more than 50 percent of China's total textiles and garment exports.

Exports are over concentrated in a few markets, which lead to intensified competition leading to trade friction with those countries or regions. In the first quarter of this year, Europe and the United States have sent warnings of a surge in textile and garment exports from China.

In the recall notifications issued by U.S. Consumer Product Safety Commission, the total number of notifications involving China's textile and apparel products grew by nearly 20 percent and that of EU Rapid Alert System increased by an awesome 633 percent, when compared with the same period of 2008.

China's textile exports to emerging markets, like countries in Asia, Russia, the Middle East, Latin America, Africa, are growing. But, industry experts say that domestic textile enterprises should continue to expand to respond to existing shrinking markets, deal with trade protection and stabilize export markets.

Investment from Europe and the United States into Asian emerging economies has significantly reduced, due to the financial crisis. China has relatively abundant capital which can push intra-Asian investment which will also help grab additional markets will grow, if Asian countries and regions will further open capital market.

Fibre2fashion News Desk - China

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