14 December 2004

China Sets Textile Export Tariffs

The following is excerpted from the 13 December 2004 online edition of “The Journal of Commerce”.

In a move aimed at easing friction with the United States and other trading partners, China will impose tariffs on some textile exports in a bid to protect higher value products.

The Chinese state media reported that the tariffs are one of eight measures announced by the Commerce Ministry amid fears that Chinese products will be the target of anti-dumping and safeguard duties after Jan. 1, when global quotas on trade in textiles and apparel are eliminated.

Although the ministry did not say which products would be subject to the new tariffs or how high the tariffs would be, it said that duties would be based on volume of trade rather than value. "We hope that by adopting this measure, we can encourage the export of high-value products and further optimize the structure of China's textile export industry," the ministry announced.

Other steps in the announcement include making textile companies report on their expansion plans, encouraging them to invest abroad, and fostering the development of domestic brands. China made 17 percent of the world's textiles and clothes in 2003, but the WTO sees that soaring to about 50 percent within a few years.