A new online textile export license system began operation in
China on Tuesday, just days before a quota system for shipments to
the European Union (EU) is to expire, sources with the Ministry of
Commerce (MOC) told Xinhua.
The online application system "is one of a series of measures
taken by China to better regulate the textile export market and
avoid a surge of Chinese clothing exports to the EU like the one in
2005," Zhao Qiuyan, a senior analyst with the China Trade Remedy
Information website, under the MOC, told Xinhua.
After international textile quotas expired in January 2005,
Europe was swamped by low-priced imports from China. That surge led
Chinese and EU authorities to sign the Memorandum of Understanding
on China-EU Textile Trade, which renewed quotas on China's textile
exports to the EU in June 2005. But that pact expires at the end of
2007.
The two sides agreed this September to set up a bilateral system
to monitor Chinese exports of T-shirts, pullovers, men's trousers,
blouses, dresses, bras, bed linens and flax yarn after the quotas
end. Monitoring is to continue until the end of 2008, without
quantity restrictions.
Under the system, these eight categories will be tracked on the
Chinese side through export licenses and will be monitored when
they enter the EU, which is watching for signs of another surge in
textile goods from China.
The MOC and the General Customs Administration issued a circular
on European-oriented textile exporters' management earlier this
month, in which they stipulated that only qualified textile makers
could apply to local MOC branches for export licenses, either
electronically or on paper.
The China Chamber of Commerce for Import and Export of Textiles,
China National Textile and Apparel Council and China Association of
Enterprises with Foreign Investment established the standards in
November for domestic exporters and formed a joint assessment
group.
The standards require exporters to have a minimum registered
capital of 500,000 yuan (68,250 US dollars), at least two years of
export operation experience and no violations of intellectual
property or environmental protection laws.
"The bilateral monitoring system could eliminate the practice of
quota trading between some export companies," Zhao said.
The MOC didn't reveal how many qualified exporters had applied
under the online system. But experts believe that exporters'
quality assessment and license application and approval systems are
expected to help reduce the often vicious competition among
domestic enterprises.
"China has surplus production capabilities in textile industry
and competition is fierce, so we cannot guarantee that Chinese
textile exports to the EU wouldn't surge again," Zhao Yumin, a
research fellow with the Trade and Economic Cooperation Institute
of the MOC, told Xinhua.
Commenting on the possibility of "Made in China" products
flooding the EU, Zhao Qiuyan said that besides government efforts,
domestic exporters should exercise restraint, since the EU might
adopt tightening measures if there was a new surge of Chinese
goods.
Under paragraph 242 in the "Report of the Working Party on
China's Accession to the World Trade Organization (WTO)", if there
is market disruption caused by a surge of textile exports from
China, other WTO members are permitted to resume curbs.
This past October, MOC vice minister Gao Hucheng urged Chinese
textile makers to develop more in-house brands, streamline their
product structure and narrow disparities with international
competitors through exchanges and cooperation.
Industry watchers said if the bilateral monitoring system
functioned smoothly, it would serve as a good example for dealing
with the Sino-US textile quota system, which is set to expire by
the end of 2008.
(Xinhua News Agency December 26, 2007)
