Export growth of products of energy-intensive and heavily polluting industries, by contrast, slowed down 16 percent.

Although export slowdown in some sectors have raised the specter of bankruptcy and rising unemployment, Gao said the trade policy would remain stable and the government's stance of reining in energy-intensive and heavily polluting enterprises would not change.

In June, export of garment and accessories slowed down by 15 percent to $9.8 billion, the lowest monthly increase this year. Export of garments for the whole year went up by only 3.4 percent to $49 billion.

Apart from the tightening policies, causes for the slowdown also include a faster appreciation of the yuan against the US dollar, which has made Chinese products more expensive, and the rising raw material and labor costs.

A US-led slowdown of the global economy has also cost Chinese exporters dear.

As a result, over two-thirds of textile enterprises are suffering losses. The average profit rate in the industry for the first five months of the year was only 1.1 percent, according to the Ministry of Commerce.

Enterprises are therefore seeking favorable government policies in these sectors. Some suggest a slower yuan appreciation or increased export tax rebate. A proposal by China National Textile & Apparel Council to the State Council reportedly seeks more export tax rebate on some textile products.

Top leaders, including Vice-Premier Wen Jiabao and Commerce Minister Chen Deming, have visited enterprises in Zhejiang and Jiangsu, both major textile export bases. Many see in these visits seeds of a possible policy change for the rest of the year.

"We'll continue to clamp down on energy-intensive and highly polluting industries, and will further investigate and evaluate the difficulties faced by some industries," said Gao when asked whether the tax rebate would be increased.

(China Daily July 23, 2008)