6. Protecting intellectual property
The exterior design of textile products mainly consists of the fabric pattern
and the pattern and design of the garment style. This is a special type of
intangible asset. The designer or owner will have independent rights to the
design. The designs of WTO members will be protected as practical art works
according to China's "Regulations on Implementing International Agreements."
China has promised to devise special laws to protect textile product design.
7. Complying with TRIMs Agreement of the WTO
Currently, projects involving a capacity increase in cotton textiles,
chemical fiber and wool textiles are checked and approved by relative government
departments. Regarding chemical fibers, there are still restrictions on the
proportion of shares held by foreign investors. For instance, no solely owned,
foreign-invested enterprise in ammonia fabrics, polyester and acrylic is
allowed. After the WTO entry, we should follow "TRIMs."
Under general circumstances the restrictions on geographical areas, quantity,
proportion of shares for foreign-invested enterprises and other restrictions on
investment should be relaxed. In the current clearing campaign of the
administrative approval procedures, the procedure for approving chemical fiber
and wool textile capacity will be abolished and the "two certificates"
management system for cotton production capacity will be retained.
8. Agreement on special-protection measures
Should a WTO member country believe textile garment imports from China have
harmed its enterprises, before January 1, 2009, via discussions, China will
control the exports quantity of one or more types of textiles and garments "at a
level no higher than 107.5 percent of the exports quantity to the member country
in the first 12 months before the most recent discussions (wool products are 106
percent)." On one hand, this will enable the importing countries to adopt
optional protection methods against Chinese products and, on the other hand, it
will enable countries that did not implement restrictions on Chinese products to
restrict Chinese exports.
9. Other methods kept by WTO members
Argentina abolished quota (bilateral) restrictions on textiles and garments
before July 31, 2002 and will cut the excessive tariff every year. Although
Hungary has proposed to restrict imports of textile products from China, it will
open its market phase by phase. Mexico can use anti-dumping measures against
textile and garment imports from China and is not bound by the relative WTO
anti-dumping agreement and the documents relating to China's WTO entry. These
countries promised to abolish regulations that do not comply with WTO
regulations against China three to six years after China's entry into the WTO.
[Source: China Textile Industry Council]
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