India gains from fall in China's textile exports
India is one of the major beneficiaries of US restrictions on Chinese textile exports during the first half of the year.india Updated: Aug 27, 2006 11:39 IST
India is one of the major beneficiaries of US restrictions on Chinese textile exports during the first six months of the current year, the Communist giant's top planning body said while cautioning the industry to brace for even less growth in exports in the second half.
For the first time in recent history, China's textile export to the United States in the first six months dwindled by 0.6 per cent from the same period last year mainly due to the export restraints, a report by the National Development and Reform Commission (NDRC) said.
China's textile export to the United States in the first six months amounted to USD 8.23 billion, the report said.
The growth is 76 per cent lower from the same period of last year. It is the first time for China to see its textile export to the United States drop in recent years, it said.
Due to import restrictions, growth of China's textile export to the European Union also witnessed a decline as the total amount valued at USD 9.5 billion , up 10.3 per cent from the same period of last year.
The year-on-year growth is 46.2 per cent down.
While China's export of textile products declined, China's bordering countries such as Vietnam, Pakistan, Cambodia and India saw a sharp rise of their textile exports to the United States, the report said.
India's textile exports to the United States rose by over 18 per cent year on year, the NDRC noted.
Changes in the trade environment have greatly affected China's textile export and such a trend is expanding, the report noted.
During the January-June period, China's textile enterprises saw a sharp rise of their export to regions without export restraints, which reached USD 44.75 billion , up 34.4 per cent from the same period of last year.
Among those regions, China's textile export to Turkey rose by 221 per cent year on year, Mexico, 155 per cent, Macao, 63 per cent, South Korea, 44 per cent and the Association of Southeast Asian Nations (ASEAN), 44 per cent.
Despite of all those adverse conditions such as price rise of raw materials, appreciation of the Chinese currency, trade frictions and shortage of cotton supply, China's textile industry remains at a 'good status', the report said.
The gross value of industrial output of China's textile enterprises above designated scale reached 1,141.2 billion yuan (USD 142.65 billion) in the first six months, up 23.7 per cent from the same period of last year, and the added value, up 24.6 per cent to 295.7 billion yuan (USD 37.07 billion).
The NDRC report predicted that in the second half year, China's textile industry will remain a stable growth but uncertain trade factors will lead to even less growth in export.
First Published: Aug 27, 2006 11:39 IST