The U.S. textile trade group expressed anger at the measures taken by the Chinese government to aid its textile companies, and alleged that after the U.S. restrictions on China’s textile export quotas were lifted on January 1, 2009, the U.S. government needs to take tougher measures to restrict China. Action to surge textile imports.
The National Council of Textile Organizations (NCTO) made the above comments immediately after the Chinese government decided to increase the export tax rebate rate for Chinese textile and apparel exporters from 14% to 17%.
The upcoming increase in the export tax rebate rate for textiles and clothing follows the same upward adjustment measures adopted for export companies twice earlier in 2008. Since July 2008, China has raised the export tax rebate rate for textiles and clothing from 11% twice. It is raised to 14%. If it is raised again to 17%, the overall increase will reach 55%.
NCTO stated that as a result, the subsidies received by the government for Chinese textile and clothing exporters have increased from 19 billion yuan to 29 billion yuan in the past four months.
Now the president of NCTO hopes that US President-elect Obama and the new government can take tough measures to prevent the surge in Chinese textile imports.
What the U.S. trade groups particularly hope is that if the quota restrictions on Chinese textiles exported to the United States are lifted on January 1, 2009, the U.S. Congress can proactively draft trade remedy proposals to prevent the surge in Chinese textile imports.
