“Companies will have to return export quotas they don’t expect to fulfill to the government for reallocation, the Ministry of Commerce said today on its Web site. Those that use less than 90 percent of their remaining quota will get fewer rights in the following year or none at all, said the statement. More detailed regulations will be released soon, it added .China agreed to limit exports of clothing to the European Union and the U.S. under the so-called quota system through 2008 . “The government enforces these limits by selling exports rights each year. Still, not all of these rights are used as some companies buy too much because of poor planning . “China’s clothing and textile export growth will slow to 15 percent this year because of an expected increase in domestic consumption and a stronger yuan, the National Development and Reform Commission, China’s top planning agency, said on May 10 . “The yuan was trading at 8.0217 to the dollar as of 4:21 pm in Shanghai, according to data Bloomberg compiled. The currency hasn’t risen past 8 since it reached as high as 7.9970 on May 15, the first time it climbed above 8 in more than 12 years . “China’s textile exports will rise to $135 billion yuan this year from $117.5 billion yuan last year, when shipments grew 20.7 percent, the planning agency said on May 10 . “China controls more than a quarter of the world’s $400 billion textiles and apparels market, according to the American Manufacturing Trade Action Coalition . “Source: The Financial Express .
Date:5/30/2006
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