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China's textile and clothing exports rose to record levels at USD 12.72 billion in November but could soon lose their comparative advantages in costs to developing nations like India, the state media reported today.

China's textiles exports were up by 30.85 per cent from November 2005, the highest monthly growth in two years, according to the latest customs figures.

However, experts warned against believing the high indicated a new wave of rapid export growth. "It's only a temporary flourishing before fading away," the China Securities Journal reported today.

The paper attributed the hike to export firms that were catching their last chance to benefit from higher export tax rebates.

As the textile industries of India, Pakistan and ASEAN are developing fast, the Chinese textiles exporters are facing the heat from them in the region, it said.

The Ministry of Commerce announced in September that tax rebates for textile exports would be cut from 13 to 11 per cent, but companies that signed export contracts before September 14 and cleared their goods through the customs before December 14 could still claim the original tax rebates.

The government had hoped the measure would force domestic textile firms to be more aware of technical innovations and to develop more products with proprietary intellectual property rights.

The move coupled with the appreciation of the Chinese currency, Renminbi, however, has pushed Chinese textile manufacturers to mark down their prices this year to sustain their exports and offset the negative impact of the rising yuan.

Source: Industry Website