Chinese clothing manufacturers say they have temporarily moved some operations elsewhere in Asia to beat trade barriers amid pessimism that disputes with both the European Union and the US over quotas will be resolved.
Clothing destined for export has been stockpiled at factories in China, and left sitting in warehouses in Europe, as the EU has ruled the shipments exceeded quotas agreed in June between Brussels and Beijing.
Pullovers, trousers and blouses have all hit their quota limits, with the stockpile of pullovers reaching 58.6 million. Bras and T-shirts are also set to exceed quotas in the coming days, with both categories just 1 per cent below the permitted ceiling last night.
This means that five of the 10 categories covered by the China-EU textiles deal are likely to exceed quota limits, with retailers pressing for a speedy end to the escalating crisis.
The impounding of some shipments has angered a number of EU member states and has also prompted some retailers to take legal action to recover money lost as a result of the dispute.
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