Financial Times FT.com

China raises taxes on textile exports

By Alexandra Harney in Hong Kong, Alan Beattie in London, Raphael Minder in Brussels

Published: May 25 2005 07:26 | Last updated: May 25 2005 07:26

China has sharply raised taxes on its own textile exports in the hope of heading off import curbs from the US and European Union amid a deepening global trade dispute.

Exporters of 74 categories of textiles in China, including T-shirts, underwear and trousers, will face new duties on every item they ship overseas, starting June 1. Tariffs on most items will rise to Rmb1 and sometimes reach Rmb4, the ministry of finance said on its website. This compares with the Rmb0.2-Rmb0.3 tax imposed on 148 categories of goods in January.

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