Blog: Leonie BarrieExport plan reopens China subsidies debate

Leonie Barrie | 30 April 2009

China's three-year plan to support the country's textile industry is typically short on details about how, exactly, anything will be implemented. The idea to grow production and exports and even boost domestic consumption might look good on paper, although the reality of course will be much harder to achieve.

But one group will surely be pleased by the proposals: US textile lobbyists. They’ve long been arguing that China over-subsidises its textile firms and urging tough action against the country’s “predatory practices.”

According to calculations by the National Council of Textile Organizations (NCTO), in 2007 China provided 73 subsidies to its textile industry. And as many as two dozen of these were export contingent.

But while the US Treasury department recently refrained from accusing China of illegally manipulating its currency – much to the annoyance of textile trade groups who argue an artificially weak yuan disadvantages US manufacturers – an 8% annual growth in Chinese exports over the next three years boosted by subsidies from Beijing will be much harder to dismiss.

 

CHINA: Three-year textile plan targets export growth


BLOG

US border tax a contentious issue

Fresh from their disappointment at seeing the Trans-Pacific Partnership (TPP) free trade deal abandoned last month with an executive order by President Donald Trump, the US apparel and footwear sector...

BLOG

Primark's sustainable cotton programme takes shape

With the ultimate aim of ensuring all the cotton in its products is sourced sustainably, value clothing retailer Primark is adamant that having a business model focused on offering the lowest prices o...

BLOG

Trump administration starts to shake up trade

Last week we marked the inauguration of Donald Trump as the 45th president of the United States by taking a closer look at what's at stake for the textile and apparel trade – especially his promises t...

BLOG

Likely shifts in the sourcing landscape in 2017

Continuing our look at what lies ahead for the apparel industry and its supply chain in 2017, the panel of industry experts consulted by just-style last week tackled likely shifts in the sourcing land...

just-style homepage



Forgot your password?