China : Fewer Exporters Bid for US Textile Quotas

Fewer Chinese textile manufacturers took part in the third bidding for quotas to export to the United States. Their diminished passion is the result of the recently lowered export tax rebate for garments, export limits for processed yarn and cloth, and appreciation of the yuan, said a veteran analyst.

Altogether 2,263 manufacturers nationwide won the bidding, accounting for 76.71 percent of qualified exporters. Participation levels dropped by at least five percent compared with the past two biddings this year.

The textile export bidders were attracted to a handful of popular categories of exports going to the US. Exporters of cotton trousers and fiber woven shirts won bids for 93 percent of the quotas in these categories, while the bidders only won less than 60 percent of those for bras and fiber trousers.

China lowered the export tax rebate rate for garments to 11 percent from July 1, and listed yarn and cloth as processed goods subject to export limits in August, impacting textile exporters.

The top five municipalities and provinces by the number of bid winners were Guangdong (817), Zhejiang (461), Jiangsu (355), Shanghai (201), and Shandong (118).

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