US Imports from China slowed down in second part of January (Statistical Report) - Emerging Textiles

China's share of US market per apparel category

US Imports from China slowed down in second part of January Statistical Report

5 February 2007

US imports from China less strongly rose in the two last weeks of January, compared with similar periods in November, December and first part of January, our compiled data indicate. A new rush may however be observed in the current month, as Chinese exporters preferred shipping in January products that are usually sent in February but could have faced slower traffic during new year holidays.

US imports from China less strongly rose in the second part of January, according to latest data that were Friday released by US trade officials.

Compared with imports from the rest of the world, shipments from China less significantly increased in mostly all categories subject to quotas.

In the preceding period in November, December and early January by contrast, China had gained large market shares in restricted categories.

Falling share

In 338 (men's and boys' knit shirts, including T-Shirts) for example, China's share of total US imports had surged from 5.54% in the two-week period to 21 October last year up to 10.78% in the similar period to 13 January.

In the two weeks to 27 January, however, China's share of US import market fell more than 3% to 7.77%.

Imports from China may later rebound, since these data are covering a very short period of time, however.

It is also too early to know if quotas are rapidly filling this year. Most shipments that arrived in January actually left China before the end of 2006 and are not subject to 2007 quotas, as a result.

With new year holidays falling in the third week of February this year, Chinese exporters shipped products in advance in January.

A new rush of Chinese apparel at US borders by mid-February would not be a surprise, as a result.

After the spring-summer season will have been received by US retailers, imports from China may rapidly slow down, in addition.

Global warming effect

US importers may also cancel orders for the fall-winter season after mild temperatures limited sales at apparel stores this winter.

Sales at Gap for instance fell 8% in December. US retail sales were generally higher, but grew less strongly than in November-December 2005.

US attacks China's subsidies

Washington Friday launched an attack on China's export subsidies by filing Beijing with the World Trade Organisation (WTO).

“China is using prohibited subsidies to compete unfairly," said US Secretary of Commerce Carlos Gutierrez.

Subsidies are covering a very large range of products and may also benefit textiles and apparel, as a consequence.

Beijing already began eliminating a series of subsidies after accession to the WTO but is suspected keeping alive others that are mostly hidden behind complex procedures.

The Bush administration is forced attacking Beijing to avoid the vote of a retaliatory bill by the new Democratic majority in Congress.