Most Chinese textile enterprises were happy about the news that China and the European Union (EU) reached a deal in the small hours on Saturday to avoid an escalating dispute between the two in textile trade. They hailed the accord as a win-win approach, beneficial for all.

"As far as our enterprise is concerned, the Sino-EU deal will provide a relatively stable and foreseeable external environment and help mitigate risk of uncertainties for the textile trade," said Xiao Yugui, president of Shanghai Textile (Group) Co., Ltd. based in this international business and financial hub.

One of the leading textile exporters in China, the group company exported 2 billion US dollars worth of textile products last year, of which one fourth were sold to Europe.

"The accord is certainly good news for domestic textile manufacturers, which have been under the shadow of trade row for months," commented Qian Feng, vice president of Huayuan Group. The group, a leading garments exporter in China, chalked up 2.62 billion US dollars in foreign trade of textiles and apparels, including 1.7 billion dollars in exports. It employs nearly 50,000 workers.

According to Qian, in the past few months, the Huayuan Group did not dare to receive orders, and most of its foreign clients dared not to make orders, as the trade rows hanged over. Eventually China and the EU reached an agreement to settle their trade dispute, which will herald establishment of a good order on international textile market, Qian said.

Qian and Xiao were echoed by their peers from east China's Jiangsu Province, an important textile production base like Shanghai.

Lin Houyu, chief engineer with the Jiangsu Textile Group headquartered in the provincial capital Nanjing, said that the most significant point of the newly clinched deal is that it is a good start for creating a stable trade environment in the world. Chinese textile enterprises could feel relaxed and end a three-month-long hesitance to receive orders, Xu added.

During a telephone interview with Xinhua, Xu also expressed his hope for China and the United States to realize a similar win-win result to end trade disputes through negotiations on an equal footing.

Chen Junliang, president of Jiangsu Cotton and Flax Group, said the accord will be conducive to stabilizing cotton price on Chinese market, which witnessed a drastic price slump due to listless transaction over the past few months.

"The deal made on Saturday said there will be a grace period from now on towards 2007, in which prices won't move dramatically on Chinese cotton market as the nation's textile export will be stable," Chen said.

According to the Sino-EU deal, the EU has agreed to stop investigations on ten types of textile products from China, including cotton fabrics, T-shirts, trousers, blouses and flax yarn.

The two sides also reached consensus on the annual growth of textile exports for the ten types of Chinese products from June 11,2005 through to the end of 2007. With an agreed base quantity, the annual growth is set to rise between 8 percent and 12.5 percent during the period.

Ning Jinyuan, general manager of the Import and Export Co., Ltd.under the Tianjin Textile Group in the leading port city of north China, estimated that not only Chinese enterprises but also European enterprises will be pleased with the new deal. As the world's biggest high-grade textiles and garments exporter, the EU has most of its clothing makers depend on textile products from China. In the interests links, Chinese textile suppliers only take 10 percent of profits from textile trade, while brand owners, distributors and retailers from the EU garner the remaining 90 percent, Ning analyzed.

"Trade friction is a common occurrence worldwide. Negotiation is a positive way to settle trade disputes," commented Dr. Jiang Haihong with Shanghai WTO-related Affairs Consulting Center.

While welcoming the result of the trade talks, many Chinese textile enterprises also expressed that in the future, they will continue to increase the added-value of their products and sharpen their competitive edge on the world textile arena, as against a changing trade climate.

Xiao Guiyu with the Shanghai Textile (Group) Co., Ltd. said his company will embark on a road of "fashion plus technology". It will make more endeavors in developing high-grade, fashionable fiber and fabrics. "If someday we have our own 'Amani' and 'Gucci' and foreign consumers recognize our own brands, perhaps they will well receive our products instead of making restrictions," Xiao said, looking forward to a rosy trade picture in the future.

Source: Xinhua