BEIJING (Reuters) - China's Commerce Ministry said on Sunday that it would step up its dialogue with major trading partners to ensure a smooth transition when the last of the quotas on its textile exports expire at the end of this year.
The United States and European Union both negotiated growth caps on exports of Chinese textiles after a surge in sales following the end of a global system of textile quotas at the start of 2005.
The U.S. limits end this year, and Beijing made clear it did not want a repeat of the so-called "bra wars" when that happens.
"In order to ensure stable growth in the textile sector and other labour-intensive industries, we will step up our dialogue and communication with relevant countries and ensure a smooth transition, to create a good external environment for Chinese textile exports," the ministry said in a statement.
Chinese textile exporters have been hit hard by the global economic slowdown, with clothing exports in the first nine months up just 1.8 percent from year earlier.
Concerned about job losses particularly in labour-intensive industries, the government last week raised export tax rebates for textiles and many other products, the second such move in three months for the textile sector.
Despite the slowdown in shipments, there are signs that Beijing could face increasing resistance from its trading partners towards its steps to prop up textile exports.
U.S. Trade Representative Susan Schwab said last week that she had urged Beijing to eliminate certain government subsidies for its textile industry or face possible U.S. litigation at the World Trade Organisation.
China's commerce ministry urged companies to adjust their product mix and for industry associations to work out their own arrangements for avoiding a sudden spike in any particular product lines.
"(Firms must) avoid blindly expanding production capacity, raise the quality and value-added of their products, and produce more brand names so as to improve the international competitiveness of Chinese textile products and their resistance to risks," it said.
