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China Tightens Credit and EnvironmentalLaws

China is attempting to rein in excess economic growth and to curtailpollution. The Chinese Central Bank has raised the reserve requirementto 12 percent of deposits， which will take effect August 15 and follows anincrease in the base interest rate to 6.84 percent. A stronger set of controlsis being implemented to slow the growth of high-energy consuming， high-polluting companies， with a release of the country's first \"black list\" ofhigh-polluting businesses. To address this issue， the State EnvironmentalProtection Administration has issued a new set of rules for the banking sectorthat could deny the 30 \"black listed\" companies new bank loans due to theirpollution records. Banks are also being told to restrict credit to companiesthat did not follow government guidelines for pollution emission standards.In an attempt to enforce these measures， the central government has said itwould restrict the available credit to a region if the local government failedto enforce the guidelines. So far， paper， steel and chemical manufacturersappear to be the enterprises most affected， but the man-made fiber sector willultimately be impacted by the Chinese government's expansive effort to reducepollution.

(Source: Globecot)

China Bought 6.527 Million Tons Cotton byJuly 25

By July 25， China has accumulatively purchased 6.527 milliontons of cotton in the latest cotton year from August 2006 to September2007， ascending 17.9% on the previous cotton year， accordingto the sample survey of the national cotton market supervisionsystem built by China National Cotton Reserves Corporation.Meanwhile， the country has processed 6.485 million tons of cotton in total， rising18.3% year over year， and has sold 6.067 million tons of cotton， hiking 54.9%.The sales volume is forecast to reach 6.367 million tons， rising 12，000tons from July 20， together with the 300，000 tons of cotton grown inXinjiang Uygur Autonomous Region the reserve company bought.Actually， the nation checked cotton price surge by selling the Xinjiang-grown cotton. On July 27， the average price of the 328 cotton wasCNY 14，510 per ton， growing CNY 207 per ton or 1.45% on July 20.In addition， the textile industry will probably earn CNY 112.5 billion profits inthe year， boosted by the advanced profitability， estimated China National Textileand Apparel Council.

(Source: Sinocast LLCI

Government to Set NewStandards for TextileProducts

It is learned from City StandardsAcademy， China will implement six newstandards for textile products from July2007， including knitting and sewing caps，the sewing method and terms of textilesand clothes， elastic wool products， also forthe inspection of wool products' quality.These standards will be set to improveon Chinese textile products so thatit can come at par with internationalstandards in all respect including thesafety and environmental protection.However， these standards will have adverseeffect on the Chinese textile and clothingenterprises as inspection as well as theproduction cost of products will increase.

(Source: Fibre2fashion)

China's Textile ApparelIndustry Profits to Rise35%

Profits of China textile and apparelindustry will grow 35% year-on-year to 14.8billion US dollars in 2007， China NationalTextile and Apparel Council announced inJuly.

The CNTAC predicted the total outputof the industry would rise 20% in last yearto 397.4 billion US dollars this year: theyarn production would rise 20%; the fabricproduction would increase 12%， and that ofthe MMF would rise 13 % and garment up14% in the second half year.

It is estimated that the foreign sales oftextiles and apparel would amount to 22.4billion USD this year， up by 16% comparedwith last year.

NDRC: Textiles Profits toDrop in 2nd Half

The textile industry profit will likely fall by633.91 million USD in the second half of thisyear， with the profit margin down by 0.26%，said the National Development and ReformCommission.

The growth rate of textile exports willslow down as the tax rebate is to be reducedto 11 percent from 13 percent from September15 of 2007. According to NDRC， the expectedgrowth rate of textiles export in 2007 is 16%year on year， lower than the 25% growth rate in2006， although the export value in 2007 is stillexpected to reach 165 billion USD.

Customs figures show the textile industryexported 57.37 billion USD in the first fivemonths of this year， up 15.55% year on year，and the increase rate saw a nearly 9% drop yearon year， lower than the 12.25% of the nation'sexport growth rate.

(Source: China Daily)

Xinjiang: Cotton CropAppears to have Reached2.85 Million Tons

As of June 30， new crop shipments fromXinjiang Province to the East reached 2.5million tons， which included a very smalltonnage of imported Central Asian cotton. Inaddition， Xinjiang's textile mills are estimatedto have consumed approximately 350，000 tonsof cotton in 2006/07-2007 yarn output is up23%. This estimate would confirm early rumorsof a 2006/07 cotton crop of near 2.8 milliontons， which represents a new all-time recordfor the province. It also divulges the challengefaced by statisticians in attempting to measureproduction in such a large geographical anddiverse region.

(Source: Globecot)

Qingdao: Handles Nearly Half of 2007Cotton Imports

China imported 1.18 million tons of cotton during the first six month of2007， with 525，000 tons or 44.6% of all imports moving through Qingdao Port.The value of the imports reached 730 million USD or an average of 1，384 USDper ton.

In terms of trade mode， the processing trade took a proportion of 41.3%of all imports or 217，000 tons， the general trade totaled 66，000 tons， and thefree trade warehouse transits totaled 143，000 tons and arrived at 90，000 tons inimport. The bulk of the cotton came from the U.S.， India and Uzbekistan.

Henan: The 1st Garment Industrial Parkto open

The official stone-laying ceremony of the first Garment Industrial Park inZhengzhou city， Henan Province， was held on July 26. The park covers an areaof around 400 Mu and has attracted an investment of 950 million yuan.

In accordance with the '11th Five-Year' plan of Henan Province， thisGarment Industrial Park is classified as one of the major bases.

The base， a unified six-storey factory with technologically upgradedmachineries， will seamlessly integrate costume design， production processing，display and sales.

The estimated yearly capacity of the park would be 70 million pieces ofgarment with an annual output value of 1.5 billion yuan. It will directly providejobs for 15，000 people.

(Source: Fibre2fashion)

Macau: Domestic Exports Value Drops by17.8%

Information from the Statistics and Census Service indicated that Macao'stotal exports amounted to MOP 1.86 billion in June 2007， down by 10.8% overthe same month of 2006. Among this， the value of domestic exports dropped by17.8% to MOP 1.26 billion， while the value of re-exports increased by 9.1% toMOP 595 million. Correspondingly， the imports amounted to MOP 3.62 billion，up by 9.5% year-on-year. A trade deficit of MOP 1.76 billion was recorded forJune 2007.

During the period of January-June 2007， the exports dropped by 7.8%year-on-year to MOP 9.54 billion， of which the value of domestic exportsfell by 19.9% whereas the value of re-exports rose by 24.8%. Meanwhile， theimports grew by 15.6% to MOP 20.09 billion， bringing about a trade deficit ofMOP10.55 billion. The exports/imports ratio decreased from 59.6% in the firstsix months of 2006 to 47.5% in the same period of 2007.

(Source: Macau-Statistics and Census Service)