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Trouser makers warned of limits

2005-6-29

Chinese trousers manufacturers should stop exporting cotton trousers to the United States, according to statistics from the China Chamber of Commerce for the Import and Export of Textiles.

Other textile exporters should also be careful about their exports of certain categories under US restrictions imposed in May.

The statistics published on the chamber''s website showed that the clearance rate of cotton trousers had exceeded 103 per cent of the year''s quotas given by the United States by June 23.

The figures also showed that 97 per cent of the quota for shirts and 84.7 per cent for underwear had been used up in one month after the curbs were imposed.

This is the first time the country has published the clearance rate of the seven categories of textile products.

The chamber will continually update its website about the clearance.

Earlier predictions said US quotas for these categories were likely to be used up in two to three months after the curbs were implemented.

Although US Customs keeps publishing information about the categories in question, the figures do not include products being shipped.

US figures suggest that 69.3 per cent of trousers, 68.4 per cent of shirts and 65.7 per cent of underwear quotas had been used up by June 24.

"Exports of Chinese companies were blind in some degree before the establishment of this system," said one official who declined to give his name.

It was because they had no access to first-hand information, she said.

Some Chinese firms chose to transport products by air to fulfil the orders before US borders were shut against them, said Cao Xinyu, vice-chairman with the chamber.

China and the United States are still keen to solve the ongoing trade disputes without a trade war, although they have still failed to reach any agreements despite talks.

The first round, after China made a deal with the European Union, was held on June 17 and a second has been proposed.

The Sino-EU deal saw the two sides agree a mutually satisfactory growth rate for China''s textile exports to the EU market, and have set a good example for the country''s talks with the United States, experts said.

 
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