However, he acknowledged that a more flexible scheme would be an improvement. The current scheme is "very cumbersome" with a low take-up rate.
Some Hong Kong-based manufacturers anticipated safeguard quotas from the US in 2005 and have already developed their OPA operations.
In an interview with WGSN, Stanley Szeto of Lever Shirt, which has factories in Shenzhen, said: "In our case, we expanded our OPA capabilities last year. I know a lot of people who bet everything on China, closing down their OPA capabilities and closing down their overseas facilities.
"But in our case, we actually expanded our Hong Kong base in anticipation of safeguard measures. So it hasn't been a big problem. In fact, it's helped us because if the safeguards hadn't happened, we would have spent all that money for nothing."
On the subject of ongoing discussions between the US and China to reach a mutual agreement on limiting Chinese exports to the US, Willy Lin said: "At least they are getting closer to certainty. Stability is all-important. Volatility is no good for anyone. We just hope the agreement will come quickly. And we just hope the [American] politicians are more practical - we hope they will learn something from Mr Mandelson."
Australian Wool Innovation Ltd.
marketing@alchempro.com
