Garment Exports

Over 400 million garments shipped by China to US

According to Chinese Customs data, China exported 434 million garments to the United States in the first sixty days of the year, following the removal of quota restraints. During this same time period, 14 textile plants in the United States have closed. Exports by China of major apparel products were up 486 per cent for January and February, with some products recording increases as high as 2,100 per cent.

The largest export increases were in cotton knit shirts and trousers, which were up 2,120 per cent and 1,398 per cent. China shipped nearly 47 million cotton trousers in January and February 2005, up from 9 million in Jan-Feb 2004, when China was still under quota control. China also shipped 37 million cotton knit shirts in January and February 2005, compared to 1.7 million knit shirts in Jan-Feb 2004. While Chinese imports are surging, 14 US textile plants have already closed in 2005, triple the rate of plant closures last year in 2004. Textile plants have closed in North and South Carolina, Pennsylvania, Indiana and Virginia.

China’s prices continued to fall in February, with Chinese prices now down 31 per cent on major products since the beginning of the year. One product group, underwear, has seen a price drop of almost 50 per cent. United Nations data has shown that China charges an average of 58 per cent less for clothing than other countries, including those with lower wage rates. The Chinese government has declared the textile sector a “pillar industry of the nation” and provides it with enormous subsidies, rebates and tax incentives. China also illegally manipulates the value of its currency, giving its textile and apparel exporters an estimated 40 per cent price advantage against US and other producers. Meanwhile, the NCTO has renewed its call for the US to move quickly to self-initiate safeguard actions.