China's textile exports may slow
By Furniture Today Staff -- Furniture Today, May 26, 2003
Beijing — China's powerful growth in exports of textiles and garments is expected to slow this year, according to local industry experts, who have cautioned Chinese producers not to blindly expand their capacity.
China's exports of textiles and garments topped $60 billion in 2002, accounting for about 20% of the national total, according to an article in Asia Pulse.
Although China's entry into the World Trade Organization has pushed the growth of the country's textile exports, the industry still has encountered trade barriers. In addition, the sluggish U.S. and Japanese economies are keeping down the demand for high-end goods and supporting the demand for low-end goods. The canceling of export quotas has given importers the opportunity to slash prices of Chinese textiles even further.
With the abolition of quota control on textile products, international technological trade barriers are expected to become the main obstacle for the export of textiles from China.
Only 35% of China's weaving equipment is less than 10 years old, while such looms represent about half the equipment in its main competitors, India and Pakistan.
The competition for the world market in textiles is becoming fierce as the industry also continues to expand in China's neighboring countries.
