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`US, EU curbs to have a short-lived effect on Chinese textile exports'

Our Bureau

New Delhi , June 3

THE recent clampdown by the US and the EU on Chinese textile products would not have any significant long-term effects on the industry, according to an Assocham survey.

The Chamber has said that while the move would have negative impact on employment in some areas in China in the short term, the growth of Chinese textile exports is likely to continue over the long term.

About 19 million Chinese people, mostly migrant workers from poor areas, are employed in the country's labour-intensive textile sector with per-capita monthly income ranging from as low as 500 yuan (about $65) in inland China to a little more than 1,000 yuan (about $130) in coastal areas.

According to the Chamber, the restrictions on Chinese textile imports will deal a heavy blow to lives of some of those low-income Chinese textile workers and their families.

However, China's textile industry is expected to bounce back as the labour force in the US and the EU would not be able to compete with economic labour available in developing countries such as India and China.

After the quotas were lifted on January 1, 2005, about 12,200 people lost their jobs in the apparel and textile industry in the US in January alone, according to the Bureau of Labour Statistics.

"The US labour force, per se, cannot economically compete with the labour force of developing countries as the US wages are substantially higher than wages of developing countries, and, there is no going back," the Chamber said.

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