The East China Fair, which opened on Tuesday, is the first large fair of textile products after the global textile quota was lifted at the beginning of the year. On the first two trading days, textile and clothing trade surged drastically compared with last year, but most exporters are showing prudent optimism towards future textile trade. CRI's Wang Jing reports from Shanghai.
Textile trade has been in the spotlight at the fair from the day it opened, when a total of 87 million dollars worth of the textile and clothing was traded, which doubled the number for the same day last year.
It is two months since the expiration of the global textile quotas, which ended on January 1st this year, and domestic clothing producers have been expecting a trade surge at this largest regional trade fair which specializes in textile products.
But most manufactures know the lifting of the quotas won't help them too much.
Barry Zhang is a sales agent from textile giant Orient International Holdings in Shanghai.
"Styles are the biggest selling point now. We are promoting new styles designed by ourselves at the fair. And we believe our styles are very good. Its styles that can decide whether our products will still have a market share."
The expectations of surging exports of domestic textile products have lured many more manufacturers into the market and profit margins are getting smaller.
In January, export of clothing increased 26 percent, and of threads and knit products increased 35 percent, but the price of individual products has fallen.
Many manufactures complain that, even with a growth of orders, profit doesn't increase accordingly.
The government has now taken measures to regulate the market.
A provisional regulation on automatic approval for textile exports takes effect on March 1st.
This will step up the statistical analysis and monitoring of China's textile exports, to release timely warnings to traders on textile exports.
Pan Longqing, director of the Shanghai Foreign Economic Relations and Trade Commission says the government aims to stimulate the export of quality Chinese textiles, readjust the growth pattern and restructure the textile industry.
"It will help increase the quality and added value of export textile products. A number of manufactures will be ruled out if their quality is not good, with low added value and high cost."
At the East China Fair, self-designed clothes and new materials make up a large part of the products traded.
Barry Zhang, sales agent from Orient International Holdings in Shanghai, says their next step is to explore the US market.
"The lifting of the textile quota gives us an OK to enter the US market. We are going to take our products to fairs in United States. After all, the East China fair is at home."
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