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Summary: The entry of China in EU market, is more challenging in terms of monopoly, the most critical sector are those associated with the access of the market. The adoption of the countervailing measures by importing countries to stem the flow of the imports from China is a real possibility…
The EU has progressively liberalized textile and clothing imports under quotas to a present level of only 25% of total imports.(Heagreaves,2004)(Smook, 2005) Though the barriers to the entry into the EU market has increased considerably in terms of quality, innovation, lead-time and design, the benefits of 'Chinese imports without quota' remains attractive. If the top importers of textile apparel into the whole world EU is assessed, China ranks in the first place, but only accounts for 19.9% of the market. The growth of China with increased penetration of EU will possibly assist in sustaining competitiveness in China, which will make it less reliant on US market. (Smook, 2005)
The globalization, of China, in the phasing-out quota, will produce new challenges in the competitiveness, since quotas imposed were generally based on historical exports to those countries and bilateral relationships. Countries for which quotas provided a shield against their low competitive ability will lose out, and countries like China can only go forward through greater competitiveness. China joined the WTO late, at a stage when the 10- year quota phase-out (MFA) was already in progress and as a result, a number of textile and apparel items were quota free overnight. ...
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