Textile: China hikes tariffs by 400%

China on Friday announced a voluntary but drastic hike on export tariffs on 74 categories of textile products to douse a raging dispute with the United States and the European Union, which had taken retaliatory measures against surging Chinese textile shipments to their markets.

According to the Customs Tariff Commission of the State Council, China's cabinet, it would raise the export tariffs on 74 items of textile products, with a 400-per cent hike for most of the products, beginning June 1, 2005.

That means the tariffs on each piece of the said export textile or clothing product would increase from yuan 0.2 yuan (2.4 US cents) to one yuan (12 US cents). But the new export tariffs for women's cotton overcoat and mantle would be four yuan (48 US cents), compared with the current 0.3 yuan (3.6 US cents), the commission said.

The Commission also announced the imposition of export tariffs on flax yarn, the reduction of that on three varieties of briefs and shorts, and the abolition of that on knitted garment accessories.

China now imposes export tariffs between two per cent and four per cent on 148 categories of textile and clothing exports, including coats and skirts.

The tariff hike was announced in the wake of a United States decision this week to re-impose restrictions on seven kinds of China textile and clothing imports. The European