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Partership possible for China-EU textile companies


13-Apr-2005 - People's Daily
EU textile enterprises are making substantial steps toward a strong and early presence in the Chinese market. Insiders believe that a cross-border industrial chain and the market integration in the post-quota era of textiles will help bring a win-win result and mutual development of the sector.

Two days before the European Commission published guidelines clarifying safeguard actions against textile-specific imports from China on April 6, a China-EU joint textile project was launched in Shanghai by China-EU Textile Alliance (CETA).

CETA is co-funded by German, Austrian and Swiss industries associations for textiles and clothing and managed by the CETA Co., Ltd. which is registered in Germany. It will serve as a bridge between EU and Chinese textile businesses with intention of tie-up.

Mr. Baumann, CEO of CETA believes that the tariff reduction after China's WTO accession and the elimination of textile quotas bring many business opportunities for foreign producers. He expects his entity would offer an opportunity of removing the hurdle faced with EU textile and clothing producers, those in small and medium sized in particular, which do not have enough idea about their Chinese peers, and access to the Chinese market and China's industrial system.

Mr. Beckmann, chief of German Textile and Clothes Industrial Association, said for entrepreneurs in the textile business, China represents a massive market and tremendous possibilities, although they have felt pressure from China.

According to Mr. Klaus Grimm, chief representative of Shanghai office with DIHT, in the next 15 years 10 percent of Chinese consumers will have purchasing power as strong as general American consumers.

An EU delegation of textile and clothing businesses visited China at the end of March. 40 members of the delegation have expressed their interest in seeking Chinese partners, or sourcing or marketing possibilities in China.

Mr. Grimm revealed that other industrial associations, realizing the massive potential and attraction of China market, in EU are also considering similar cooperative programs as CETA.

The EU Trade Commissioner Peter Mandelson said recently that there is no reason for EU to take immediate action to restrict the imports of Chinese textiles as the data collected so far for the trade has not offered sufficient evidence.

He stressed that the EU would make prompt actions once such actions are justified by facts and data. He does not think, however, any initiative is possible before June this year.

13-Apr-2005 - People's Daily

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