These days, western countries are too much worried about the Chinese dominance in the world economy and one sector that got much attention in the last one decade was the textile sector. When China started to seriously threaten western textile manufacturers, the developed countries put a cap on Chinese textile export to stop Chinese onslaught and also find alternative sources to China. It seems that the main beneficiary from this move has been India and today Indian Textile Minister Shankersinh Vaghela told reporters that in the last quarter of fiscal year 2005-06, India had actually passed China in terms of textile export. I am quoting here from a report published in Business Standard:
"India has overtaken China as exporter of textiles to the US and Europe markets due to cap on Chinese textiles in those geographies.
China's textile export in the last quarter of 2005-06 stood at 9%, while that of India was 13% after the quota regime was abolished in January 2005 under the WTO agreement, Shankarsinh Vaghela, union textile minister, said here today.
"The 10% cap on Chinese textile exports will continue till 2008. This has provided ample opportunity for India to establish herself in the export market and compete with China when cap on its textile exports would be lifted," Vaghela added."
Now, Indian government has taken an initiative to set up 25 textile parks in India and each park will have an investment of Rs 1 billion and here Indian textile ministry will provide Rs 400 million subsidy. Already, the approval of 9 such textile parks has been issued by the ministry and each of the parks is expected to generate nearly 15,000 jobs.
I wonder if this news inspires businessmen of textile sector in Bangladesh, Pakistan and Sri Lanka as they are trying to shine in this sector. However, what you want do it very fast as the cap on China is for just another two years.
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Gee, no surprise that something like this would happen. Wonder how much China product is getting into the U.S. through other countries and not being counted.
Posted by: China Law Blog | June 5, 2006 2:32 PM | Permalink to Comment