Minister of Commerce Advocates Harmony Rather Than Trade Disputes

Bo Xilai, Minister of Commerce, indicated China's stance on the issue of textile disputes with the United States of America(USA) and the European Union(EU) in a press conference of the State Council on May 30. China will not accept the Overall Arrangement Bythe USA, nor the Guidelines for the use of safeguards on Chinese textiles exports to the EU. Bo stated that the USA and the EU base their limits on China's textile on the quote of the Paragraph 242 of Report of the Working Party on the Accession of China, but the quote is groundless and incorrect.     

In or Out？

China on April 1 raised the tax rebate rates on exports of certain textile and apparel products from 15% to 16%. It , is the fourth time the government has raised the rebate rate since last August. Dating back to February 4, the State Counc-il executive meeting examined-and approved in principle the revitalization of the textile industry adjusts planning, in the planning, the country would increase textile and garment export tax rebate rate further from 14% to 15%. The measures are expected to boost China＇s textile and garment enterprises＇ profits by RMB 9 billion, it is significantly positive for the textile exporting enterprises since the country policies convey a positive signal to consolidate the international share of China＇s textile industry. Some experts firmly declare textile exports are set to languish this year with no signs of a quick pick up, notwithstanding the increase in tax rebates. Other asserts that with the relative domestic demand extending policies released by the government, the domestic market is expected to remain stable. In these circumstances, more and more enterprises are pushed or actively choose to eye on domestic market, but is ＂going in＂ really better than ＂going out＂ for them？ If it is really a dilemma, how can they do to strike the balance？     

Export Growth Slows Down

In November of 2005, China and the U.S. signed a bilateral agreement on textiles, launching the three-year quota control for 21 sorts of textile products. In 2007, the second year for the implementation of the agreement, China＇s textile export to the U.S. underwent several changes.     

Sino-EU Textile Deal Welcomed by the Industry

Two associations representing China＇s textile producers and exporters have welcomed the textile agreement reached between China and the European Union （EU） on June 11.     

Minister of Commerce Advocates Harmony Rather Than Trade Disputes

Bo Xilai, Minister of Commerce, indicated China‘s stance on the issue of textile disputes with the United States of America(USA) and the European Union(EU) in a press conference of the State Council on May 30. 　　China will not accept the Overall Arrangement Bythe USA, nor the Guidelines for the use of safeguards on Chinese textiles exports to the EU. Bo stated that the USA and the EU base their limits on China‘s textile on the quote of the Paragraph 242 of Report of the Working Party on the Accession of China, but the quote is groundless and incorrect. 　　……     

Textile Industry: Stimulus Plan Laid out as It Suffers

China's commerce ministry has said textile export growth is poised to slow down further this year and indicated that it does not plan to go back to the quota system in textile trade. The growth rate in China's textile exports will continue decreasing this year and there will be no "big increases" in exports to the US and the EU markets although quota restrictions on exports to the two markets have been eliminated from the beginning of this year,the ministry said in a statement on its website.     

Individual Investor's Insight:Joys and Sorrows in China's Stock Market

In the past 18 months,China's stock market staged a soul-stirring and exciting drama.The ups and downs of the index seemed to be the only important number in people's life.From an eight-year low of 998.22 points in mid 2005,China's stock market has been on a bullish run to the point where the bench- mark Shanghai Composite Index at one point topped the 6,000 point barrier. After peaking at 6,092.06 points on October 16th,2007,it seems China's stock market has passed a crossroad and has since been on a downward trend.     

Talks with EU Avert Textile Trade War

After 10 hours of tough negotiations, China and the European Union finally agreed late on June 10 to avoid escalating the textile trade disputes. The two sides agreed that by the end of 2007, the rate of increase of certain textile exports will be fixed.     

-1.6%： Garment CPI kept down

While Indonesian textile producers have been lamenting the industry＇s lack of preparedness for a region-wide free-trade agreement with China that begins on New Year＇s Day, Chinese textile producers have been quietly securing space in the largest textile markets in Jakarta and Surabaya for their imports.     

China Hopes to Improve Textile Communications with USA and EU

China hopes to improve its communications with the United States and European Union as textile manufacturers in both economies have expressed great concerns since the abolition of textile trade quotas on January 1.