China’s textile exporters urged to impose price controls

Penalties to be imposed for infringement
LEONARD NEILL
CHINA’S CHAMBER of Commerce has called on its textile manufacturing members to adopt self-imposed price controls to prevent exports flooding international markets. But South African industry sources are satisfied these will have little impact on the wave of goods being ‘dumped’ in this and other countries from the Far East.
“A minimum price system is to be adopted under which textile exporters who sell their products at a price lower than that stated in the system will be punished,” says Wang Shenyang, the Chinese Chamber’s director for import and export of textiles.
This follows a move in which China’s Ministry of Commerce, facing pressure and concerns worldwide, has imposed a 0,2 to 0,5 yuan (roughly 36 SA cents) tariff per item on exports of textile products.
But SA sources are satisfied this is ‘too little too late’ and is unlikely to affect the statistical fact that Chinese goods represent 85% of SA’s garment imports, which is severely handicapping the manufacturing sector in this country.