A total of 19 million Chinese textile workers have began to feel the "butterfly effect" of trade protectionism mounting in the United States and the European Union.
Since May this year, China, as the world's biggest textiles producer, consumer and exporter, has been facing greater challenge in its foreign sales of textiles and clothing.
The past month witnessed the United State's re-imposition of import quotas on seven varieties of China-made textile products and the EU's decision to take special safeguard measures to restrict China's export of T-shirt and flax yarn to the European market.
Upon the heightened trade barriers, many Chinese textile manufacturers have had to stop accepting orders and slash production. And workers in the sector, most of them low-income earners, have to suffer under the worsening external trade climate.
On the morning of May 31, machines were buzzing at the Kangsheng Knitwear Factory at the outskirts of Shanghai. Having to give up her original idea of buying a gift for her 3-year-old son to celebrate Children's Day on the next day, Shen Qingyan, a 29-year-old mother, was standing beside an edge grinding machine, busy doing her job. Behind her, scores of chests of shirts to be sold to Italy piled up to the ceiling.
"We do timework. I earn only a few cents for a 40-euro shirt I make," Shen said. "The boss said we won't have orders any more in June. I don't know where I can get a new job," she sighed.
Sweater knitting has been Shen's second occupation since she left her underdeveloped hometown in eastern Anhui Province three years ago. She paid 300 yuan (26 US dollars) for training before taking the job, which brought her 800-900 yuan a month. She never thought she would lose the job in half a year.
Shen's is not the only case in China's textile sector. A 41-year-old woman textile worker surnamed Wang at the Yunhe Textile Group in Shanxi Province in the northern hinterland said since the advent of trade rows, her monthly salary has shrunk to 500 yuan (60 US dollars), equivalent to only a medium-grade shirt in the US market.
"I don't understand why they (the US and the EU) imposed restrictions against us simply for such a meagre earning," Wang said.
At Wang's home, there were no presentable furniture and household electrical appliances. She has to use the 500-yuan salary to support her parents and child, a minor studying at school. Hardly to make ends meet, Wang has been more anxious after she heard about the quota imposition on China's textile exports.
Dr. Rong Changhui, a Chinese expert on international trade, said, "For every item of Chinese textile export to the US and EU, more than 80 percent of the profit goes to US or EU businesses, and Chinese factories and workers have to live on limited earnings."
Foreign buyers also felt the effect of trade barriers. On May 23, five days after the United States announced the quota
resumption, a delegation of 72 US buyers came to Zhejiang Province,a major textile production base in east China. They had a good look at the textiles and manufacturers in the province, but placed few orders, for uncertainties in China-US textile trade.
According to the Hangzhou Branch of the China Council for Promotion of International Trade in the provincial capital, the buyers' delegation originally planned to order 100 million US dollars worth of textiles, apparels and accessories. But actually,they only signed letters of intent on 7.86 million US dollars worth of products and gave orders for only 1.2 million dollars worth.
Compared with private manufacturers, state-owned textile businesses will have to withstand more hardships.
The Tianjin No. 2 Cotton Mill, a traditional manufacturing base in north China, now has more than 2,000 workers with no work to do.
Deputy Director Liang Yueming is worrying about the "subsequences" once garment makers are heavily stricken in the trade dispute.
With an estimated 20 percent drop in this year's sales, the factory is considering canceling an early salary rise plan.
Chinese Commerce Minister Bo Xilai said last Monday the new trade barriers set by the US and EU would induce direct economic losses of 23 billion US dollars for China, and every item subject to the protectionist measures involved 1,000-6,000 Chinese enterprises.
Source: Xinhua