The biggest beneficiary will be China, already the world biggest exporter with textiles and clothing exports worth US$42 billion (HK$327.6 billion) in 2002, the report said. .
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There is no doubt that India and China will increase their world market share substantially in the textiles and clothing sector,’ the report by Hildegunn Kyvik Nordas, a Geneva-based WTO researcher said. .
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The report anticipated that China triples its market share while India market share is quadrupled.’ .
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Once quotas end, US clothing imports from China will leap to 50 per cent. .
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The Washington-based National Council of Textile Organisations estimates that China will pick up US$200 billion in exports from countries such as Mexico, Turkey and Sri Lanka. .
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One of the Chinese companies that hopes to benefit from the end of quotas is Zhejiang Yonglong which makes and sells woven fabrics.The Growth Enterprise Market-listed company on Friday announced first-half profit rose 43.8 per cent to 13.9 million yuan (HK$13.09 million), or 0.017 yuan a share, up from 9.7 million yuan, or 0.012 yuan a share a year earlier. Turnover rose 17.5 per cent to 240.8 million yuan. .
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Last year, about 35 per cent of Zhejiang Yonglong sales were to the domestic market, 39 per cent indirectly overseas via trading companies and 26 per cent direct sales overseas. .
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Chairman Sun Liyong said the company is aiming to raise direct sales overseas to 39 per cent next year. .
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Zhejiang Yonglong derived 68 per cent of its revenue from the mainland in the first half this year, down from 78 per cent from the same period last year. .
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The company, located in Yangxunqiao town, Shaoxing, in Zhejiang province, runs a joint research and development centre with Dupont China. It also has a Hong Kong regional office to supply the research centre with qualitative information and advice about latest market trends. .
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Alice Chu, general manager of the Hong Kong office, said the company was applying for OEKO TEX, the environmental certification of the European textiles industry, which has become an important criteria sought by European clients, especially famous brandname fashion houses. .
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Chu said the company would be be exhibiting again at Texworld in Paris next month, Europe biggest fabric fair.
Date:8/15/2004
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