China cuts tariffs on textile products

"From Aug. 1, 2005, export tariffs will be abolished for the 17 categories of textile products that have been subjected under the import quota limits imposed by the European Union since July 20," the finance ministry said in a statement on its Web site.

The statement did not provide the current tariffs imposed on these products.

The 17 textile products include men and women's woollen trousers, woollen, cotton and chemical-fiber women's shirts.

Since the decades-old global quota system was abolished in January, China has imposed duties of between 2 percent and 4 percent on 148 types of textile goods to limit the impact on its global trading partners.

In May, the finance ministry said export tariffs on 81 categories of textile goods will be abolished.

Fifty-one categories are still subject to export tariffs after the abolishment of tariffs for these 17 products, the statement said.

After reaching a compromise with the EU, China promised strict curbs will be placed on growth in exports of key textile categories until 2008.

Last month it announced it will impose new rules from July 20 to force textile exporters to apply for quotas to limit exports of certain textile products.

Chinese textile exports have jumped sharply since the end of the global quota system, triggering concerns that European and US jobs would be lost.