China's total exports were up 42% in January to US$50.8 billion but textile and clothing exports only rose 13.9% to US$3.73 billion, according to Thursday released data from the General Administration of Customs.
Although no further details were provided, partial results from Nanjing are indicating that textile and apparel exports possibly surged in volume terms.
Jiangsu textile and clothing exports only rose 10% at US$52.58 million but they increased 40% in volume terms at 32.38 million pieces, Nanjing customs said. Exports are mainly shipped to the EU and the US.
A large number of Chinese exporters were forced waiting for January before shipping their products, in order to take advantage of quotas' elimination.
China's exports of textiles and apparel are expected surging in the first months of 2005, due to the low level in quotas until now imposed to the PRC.
China's government fears retaliation from the United States. US authorities could re-impose limits under the so-called China safeguard, allowed by WTO rules.
In order to curb any surge in exports in the post-quota period, China imposed export tariffs on about 145 kinds of products, effective from 1 January 2005.
Related tax revenues were only 200 million yuan or US$24 million in January, accounting for a very small part of total costs.
Additional actions are being prepared to limit retaliation from the US and the EU.
An early warning system could be rapidly implemented by China's authorities in association with China Chamber of Commerce for Import and Export of Textiles (CCCT).
A series of contacts and meetings were already organized with largest groups that are ready to provide their support for such a real-time monitoring system.
Anarchic price competition is against their interests, China's groups said. The new system would help in limiting price war for specific products.
In the United States, the government would like speeding up safeguard procedures that were stopped by a decision from the US Court for International Trade.
The government just filed an appeal with the US Court of Appeals of the Federal Circuit, clearly indicating that the US still wants imposing limits on China imports.
In exchange, the White House could get more support in the US Congress for rapidly approving the duty-free agreement with Central America.
