Quota restrictions by the European Union (EU) and US on the Chinese textiles resulted in a sharp decline in the exports from China to these countries, informed the Customs of Shanghai.
China exported goods worth US $36.41 billion to the EU countries during the January-August period, a rise of 20.9 percent; however, the rate of increase was 21.4 percent, lower than the corresponding period last year.
Meanwhile, exports to US was at $40.87 billion, an increase of 28.4 percent for the same period, while the rate of increase dropped by 14.6 percent.
In contrast to exports, imports from EU and US rose sharply compared to the previous year. China imported goods worth $18.39 billion from EU during the January-August period, an increase of 19.4 percent with the increase of 20.1 percent.
On the other hand, import from US was $11.41 billion, an increase of 25.6 percent compared to the corresponding period last year with the increase rate reaching 23.3 percentage points.
The quota restrictions by the US and EU have been sited as the main reasons for the decline in the exports. China exported apparel worth $22.25 billion during the January-August period but here again rate of the increase dropped by 16.2 percent.
China's exports to US and EU had shot up in 2005 as the textile quota was abolished globally but it gave birth to trade disputes and rounds of talks.
Furtherdenting is the fact that as per an agreement signed between China and US, quota is to be imposed on a total 21 categories of clothing and textiles from China by 2008. The agreement has come into effect from January 01, 2006.
Meanwhile an agreement with the EU has also put quota restrictions on ten kinds of Chinese textile and apparel products exported to EU countries. The restrictions with both the EU and US pose grave threat to the livelihood of 19 million textile workers.
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