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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (2779)	3/11/2004 2:07:04 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

China looms as textile giant France : 8th March 2004 BEIJING Spend an afternoon at the shopping street known as Silk Alley in eastern Beijing, and it is easy to see why the rest of the world's producers of apparel and luxury accessories are nervous. All manner of clothes, outerwear, sunglasses and leather goods are on offer at rock-bottom prices. They range from pure kitsch like Che Guevara T-shirts selling at $2 apiece, or E1.60 - to more upscale items such as cashmere sweaters, silk suits, pashmina scarves and faux designer handbags that bear specious "Made in Italy" labels but can nevertheless be had for $15. Or less, with a bit of aggressive bargaining. Catering to foreign tourists - and to a steadily increasing proportion of chic locals - Silk Alley itself is not about to alter any international trade balances. But this market, beneath all the hustle, bustle and color, is essentially a demonstration site attesting to the vast potential of the Chinese apparel industry. Already a leading player in the lucrative business of clothing and outfitting the world, China stands to gain even more from the changes to be wrought by the World Trade Organization Agreement on Textiles and Clothing, which are due to be fully implemented on Jan. 1, 2005. That day will mark the final step in the 10-year process of phasing out all the quota restrictions that have governed the textile and apparel trade between all 146 WTO members. Producers from around the world, and across the fashion spectrum, have been sounding alarms about China's potential to take advantage of the new free trade regime and move into a thoroughly dominant position. In Bangladesh, industry leaders have warned of the "social anarchy" that could erupt when that nation's 10 million textile workers find their jobs threatened by Chinese competitors. Speaking last year at a European Union trade summit meeting, the WTO director-general, Supachai Panitchpakdi, voiced similar concerns, acknowledging that the economies of many developing countries could be "highly vulnerable" after quotas are lifted. For their part, Chinese officials have sought to allay such fears, and promise that the changes in 2005 will benefit everyone. "Extensive complementarity between countries in different stages of development will become the basis for a new type of international division of labor," according to Chen Shujing, the vice chairman of the China National Textile Industry Council. He added that as Chinese exports grew, so too would its imports of advanced equipment, cotton, and chemical fiber. Another industry official, Cao Xinyu, recently dismissed dire predictions of Chinese domination as "sensational." "China is a major player but will not sweep the world," Cao said. He also pointed out that 40 percent of Chinese apparel exports now come from international joint ventures, meaning China is splitting the profits of that business with its foreign partners. All the same, Chinese producers are looking forward to 2005. Since they now have to pay the government for quota allotments, the new quota-free regime will bring immediate savings. english.peopledaily.com.cn