China to Tax Textile Exports

China will impose tariffs on some textile exports in a move that may ease concerns by the United States and others over a flood of Chinese goods on world markets after a global quota system expires at year’s end.

The move, reported by state media today, was one of eight measures announced by the Commerce Ministry to help the industry adjust smoothly to freer trade.

The ministry did not say which products would be subject to the new tariffs, but said the duties would be based on quantity rather than value.

“We hope that by adopting this measure, we can encourage the export of high-value products and further optimize the structure of China’s textile export industry,” the ministry said.

Other steps include having textile companies report their planned investments, encouraging them to invest abroad and fostering the development of domestic brands to boost competitiveness.

China made 17% of the world’s textiles and clothes in 2003, but the World Trade Organization sees that soaring to more than 50% within three years after a decades-old quota system expires Jan. 1.

The prospect of China’s swift rise in world textile trade has alarmed the United States, which is considering import tariffs to protect American textile makers against an expected inflow of cheaper Chinese goods.