A US textile group has calculated that the Chinese government props up the country's surging textile sector with 73 subsidies covering export requirements, technology upgrades and income tax reductions.

Speaking before the US International Trade Commission on Tuesday (30 October), the National Council of Textile Organizations (NCTO) claimed China's textile industry is now growing so quickly that within five years it will employ more people than the entire US manufacturing complex.

And it reiterated its calls for Congress to pass meaningful currency legislation, among other steps.

The ITC hearing was conducted to provide an in-depth assessment of the US-China trade and investment relationship.
 
In verbal remarks, NCTO President Cass Johnson said China's textile and apparel exports are growing at an annual rate of 20%, and that through the intervention of its government, China's textile industry has invested $85bn during the last ten years, with the biggest increases coming in 2006 and 2007.
 
Of the 73 subsidies, 24 are said to contain illegal export requirements, 16 are subsidies for technology upgrades and research and development, 11 offer income tax reductions or holidays while eight subsidise loan costs or offer loan forgiveness. 

Other subsidies include land grants, lower utility costs, brand development grants, VAT exemptions, raw material rebates and worker benefit exemptions.