The intense collaboration between the Chinese government and its textile and apparel sector enables Chinese exporters to underprice its other competitors, including countries like Bangladesh and India which have lower wage rates.  According to United Nations data, China exports apparel products worldwide at average prices 58 percent below those of other countries.  And in countries where quotas have not been used, China has taken between 60 and 85 percent of the apparel market.  See the studies and analyses listed below for more information.

NCTO is a part of the Global Alliance for Fair Trade in Textiles (GAFTT), a coalition of 96 trade groups from 52 countries which are committed to ensuring that fair play and free markets govern world trade in textiles and apparel.  GAFTT strongly opposes the Chinese government’s effort to monopolize world textile and apparel trade. Up to 30 million jobs around the world, mostly from developing and least developed countries, could be lost if China succeeds. 

China’s mercantilist and predatory behavior also poses real questions for U.S. policymakers.  These include:

1) Is it good for this country to tolerate an enormous economic power such as China that uses its government organs to undermine what we consider free market principles?

2) It is proper to let the Chinese government wreak havoc in our markets and our workers because its government has decided that it will do whatever its takes for its exporters to win the textile and apparel game?

3) Should millions of workers around the globe - and potentially hundreds of thousands in the US - be put out of their jobs because the Chinese government makes it impossible for their companies to thrive and prosper? Should Bangladesh, Indonesia, the Philippines, Turkey, Mexico and Caribbean nations lose billions of dollars in export earnings because their governments believe in free markets and China does not?

The long term consequences of the emergence of CHINA Inc - this intense collaboration of government and industry - should trouble anyone that believes in the free market and also that fair competition should be the ultimate arbiter of the marketplace.

Press Release, 2/10/05

“In 2004, Imports from China Stage Massive Surge as Import Share Hits 70% in Quota-Free Apparel Categories”

Press Release, 2/3/05

“Johnson Presents Testimony Before U.S. - China Commission Highlights Unfair Trade Practices as a Key Component to Addressing the China Problem”

·    “NCTO Testimony on China threat before the US-China Economic and Security Review Commission” (PDF)

Press Release, 12/15/04
“NCTO Analysis Shows Chinese Apparel Prices 76% Below U.S. Prices and 58% Below Rest of World's Prices" 

Press Release, 9/1/04
“Updated Study Shows China Now Grabbing 72% of U.S. Apparel Market in Quota-Free Categories” (PDF)

·    “Textile Industry Announces Intention to File Threat-Based China Safeguard Petitions in September” (9/1/04)

·    “UPDATE NUMBER 3: The China Threat to World Textile and Apparel Trade” (9/1/04) (PDF)

Press Release, 6/16/04
“New Data Show China Approaching Monopoly in Quota-Free Apparel Categories” (PDF)

·    “UPDATED STUDY - 6/15/04 - The China Threat to World Textile and Apparel Trade” (PDF)