Monday, 8 January 2007

(When) will China's export growth slow down?

There is an interesting calculation on whether China's phenomenal growth could sustain. I wonder whether the observations in this article, which is based on the total trade volume of all sectors, would apply to each individual sector as well. In my view, the same probably would not hold true for the textile and clothing sector, as they were originally subject to quotas under the ATC. One may argue, however, that they have reached their full export potential in 2005 as the ATC expired that year. If that's the case, the Special Textile Safeguard in China's Accession Protocol would not be that damaging.

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