Stoppage of Chinese fake apparels to hurt Middle East
01 May '12
2 min read
The recent announcement by Chinese Premier Wen Jiabao that his country would put a break on manufacturing of counterfeit items of reputable global apparel brands, if implemented, would negatively affect the countries in the Middle East.
The economy of several Middle Eastern countries heavily depends on production and export of oil and petroleum products.
The countries in the Middle East region have oil and petroleum-related industries, including petrochemicals and petroleum refining. However, these countries lack consumer goods producing industries like textiles, apparels and accessories.
Hence, traders in these countries import apparels of reputed global brands, which include both genuine as well as fake products. While the genuine products cost high, the counterfeit ones imported from China cost less, according to experts.
A large chunk of the Middle East population prefers to buy counterfeit products imported from China, owing to the price benefit, they say. The halt in manufacturing of fake products of global brands will affect the Middle East countries, which would not be able to fill the demand-supply gap, they add.
They explain that China is often blamed for dumping and several textile and garment producing nations have imposed anti-dumping duty on Chinese made goods. However, countries in the Middle East are not affected by the Chinese dumping strategy as domestic production of textiles and clothing is low in these countries.
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