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Zhejiang apparel firms mull strategy against potential export worry

Oct '06
While footwear from Wenzhou faces the anti-dumping crises from EU, Zhejiang apparel industry lies on the rosy bed. But this prospect could no longer conceal exporters' anxieties behind it. Zhejiang apparel companies start to get prepared for any unexpected event in the future and they are now seeking for wise strategy.

At this time last year, EU and US raised the big club of anti-dumping and imposed new export quotas on China's textiles and apparel.

In early April, US Ministry of Commerce made the final ruling on anti-dumping investigation of artists' canvas from China, which was regarded as the first anti-dumping case in Sino-US textile trade.

A punishing duty ranging from 77.09-264.09 percent was imposed on China's exporters in artists' canvas business. And most of them have to pay 264.09 percent. Earlier China's exporters only paid 6 percent for import tariff.

Some insiders pointed out that for artists' canvas business it was very difficult to make benefits with duty rate over 40 percent. When US decided to impose 264.09 percent anti-dumping duty on China, it actually meant US intended to squeeze Chinese firms out from their market.

Nowadays apparel export does not only face risks of anti-dumping but also the anxiety as how long China's apparel will survive on cheap cost advantage.

Zhejiang is the top textiles & apparel export province in China, accounting for 20 percent of the total export value in the country. But the prices of export products are very low. The price for one pair of socks is only 21 US cents; a piece of tie is sold at US $1.6.

Fibre2fashion News Desk - China

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