The Ministry of
Commerce plans to employ a bidding system to allocate quotas
for Europe-bound textiles next year, according to sources with the
China
Chamber of Commerce for Import and Export of Textiles.
The chamber convened a closed-door conference on Tuesday morning
to solicit opinions from major domestic textile exporters.
The bidding proposal was put forward following requests by
Chinese textile manufacturers. It would also help better manage
exporters' performance, industry insiders said. Sources said the
ministry is expected to release the detailed regulation in a few
days' time.
Under the current quota allocation system, quotas for exports to
the European Union (EU) were based on textile dealers' volume of
shipments the preceding year.
As a result, several textile companies were allocated very low
quotas, some as low as a few kilograms of goods, and were not able
to export anything at all. This resulted in much
dissatisfaction.
"We hope all the quotas for the next year will be allocated
through a bidding process, because it is fair and scientific," said
an executive with a Beijing-based textile producer, who declined to
give her name.
"The government might accept the bidding method, but it is not
clear whether the quotas will be allowed to circulate in the
market," she said.
She added that enterprises hoped the final government decision
would be published as soon as possible so as to rule out the
uncertainties for exporters, and enable them to sign contracts for
next year with foreign buyers in October.
However, a source from the chamber said the government was
likely to adopt this method on part of the quotas and leave the
rest to be allocated in the usual way.
"Thirty to 40 percent might be used for bidding," the source
said adding that the proposal needs to be first approved by the
ministry.
Official information on the bidding method is not available.
The current quota allocation is governed by provisional
management measures implemented on July 20.
During the "vacuum period" before the measures took effect on
July 20, most textile manufacturers worked hard to export as much
as possible.
It was largely this export glut that led to the recent debacle
where Chinese textiles were stockpiled at EU ports because quotas
had been exceeded.
(China Daily September 14, 2005)