.The growth rate of China’s textile exports is expected to fall from last year’s 20.7 per cent increase to around 15 per cent this year, the State Development and Reform Commission SDRC) said”The SDRC forecast the total industrial output value of China’s key textile enterprises will grow by about 20 per cent in 2006, a decrease of six percentage points from the growth rate in 2005, ‘Shanghai Securities News’ reported”The report attributed the lower growth rate to the export limits imposed on China’s cotton products by European countries and the United States”In 2005, China’s textile industry grew rapidly thanks to the end of the global quota system. China’s cotton yarn output rose 23.6 per cent year-on-year, while cotton product export grew 31.7 per cent year-on-year. The industry made 16 billion yuan (two billion U.S. dollars) in profits, an increase of 77 per cent”The textile industry’s fixed asset investment rose 35 per cent year-on-year to reach 159.7 billion yuan (USD 20 billion). The industry also experienced a shortage of cotton supplies and tough competition on the domestic market. Statistics show that China produced 5.7 million tonnes of cotton products in 2005, but its demand for raw cotton is expected to surpass 10 million tonnes in 2006 . .Source: The Hindu .
Date:3/13/2006
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