The latest European Union trade figures show that China's textile exports to Europe surged by more than 40 per cent in the first eight months of the year, but European imports of textiles increased by just 2.1 per cent in value terms and 2 per cent in volume terms.
The biggest losers were manufacturers from Hong Kong, Macau, Myanmar and the Philippines. This breakdown is set to change the focus of a bitter battle that has dominated China's trade relations with the EU and the United States for much of this year.
It comes as the EU is about to begin battle on another trade front: leather and reinforced shoes from China.
Importantly, the new figures cast doubt on the claims of the European textile lobby that local manufacturers have been hit hard by the surge of Chinese imports.
Measures that have been put in place by the World Trade Organisation to stem Chinese imports have been justified on the basis of significant disruption to the domestic industry. The slight increase in overall European imports of clothing and textiles suggests that the safeguard measures were imposed on the basis of inaccurate information.
Textile and clothing exports by Myanmar and the Philippines to the EU slumped by 54.4 per cent and 41.4 per cent respectively in value terms in the first eight months of the year. South Korea was down 28.6 per cent, Thailand 15.1 per cent, Pakistan 16.3 per cent and Bangladesh 9.3 per cent.
Imports from the group of African, Caribbean and Pacific nations dropped 24 per cent in value and 28.1 per cent in volume terms.
The trade battle between the EU and China has now moved on to shoes. European shoe manufacturers are pushing for anti-dumping action to be taken, on the basis that Chinese manufacturers are selling at below the cost of production.
The Italian Footwear Association says imports of leather shoes from China, the world's largest exporter of footwear, rose 900 per cent in the first five months of this year.
