BEIJING, Apr 25, 2008 (AsiaPulse via COMTEX) -- -- Affected by the subprime crisis in the United States, China's textiles export to its largest market slipped into a downward trend at the end of 2007.

The latest statistics published by General Administration of Customs (GAC) show that China's textiles and garments export to the US was worth US$3.46 billion in the first two months of this year, down 7.5 per cent year on year.

The European Union, the US and Japan are China's three major trading partners. In 2007, China's textile exports to the US accounted for 15 per cent of the country's total textile export. As the EU revoked its quota restrictions on the import of 10 kinds of textiles from China as of January 1, 2008, China's textiles export to Europe has shown rehabilitative growth. GAC statistics show that China's textile and garments export to the EU reached US$5.99 billion in the first two months of this year, up 27 per cent year on year.

An GAC analytical report also warned that the abolishment of the import quota by the EU side may boost a new round of export heat in China. If China does not regulate and initiatively set restrictions, it may trigger anti-dumping, anti-subsidy and transitional product-specific safeguard mechanisms and special safeguard measures on the EU side.

Before then, the World Trade Organization (WTO) members have especially set special safeguard rules aimed at China-made textiles. According to the rule, if China's textiles export has disrupted the market order of WTO member countries in 2005-2008, the member countries can resort to provisional restriction measures once in the four years with a term of one year.

China's Vice Minister of Commerce Gao Hucheng warned on April 9 that the special safeguard measures will expire before the end of 2008, and after then, all bilateral arrangements with regard to textiles will end, and China's textile industry will, like other industries face restrictions, such as anti-dumping and anti-subsidy from all sides.

(XIC)

Thursday, April 24, 2008; Posted: 11:50 PM

Source: www.tradingmarkets.com