According to China Finance’s website, a May 26 report stated that after the U.S. and European investigation of the dumping of Chinese textiles and the impending protective measures, India has now started an antidumping investigation of Chinese silk fabrics exported to their country.

China has been given 29 days to respond to the allegation.

India’s investigation of silk dumping

On May 18, India officially announced its is charging 100 Chinese exporters with dumping products valued at US$180 million. According to preliminary information, the period under investigation is April 1, 2003 to September 30, 2004. “This case is the largest investigation of China dumping fabrics launched by India and exceeds all dumping cases that Asia and Africa have ever filed against China.”

The report states that Chinese silk exports to India have increased rapidly since 2002. China is now the world’s largest exporter of silk and satin, at over 80 percent of all international exports. In the global market, India is the largest market for Chinese silk and satin products, and accounts for 30 percent of China’s total silk and satin exports. However, India has its own silk production industry and has become the second largest producer of silk in the world.

To protect its own commercial interests, India’s silk and satin producers association (Karnataka Weaver Federation) wrote to the China Chamber of Commerce for Textile Imports & Exports (CCCT) stating, “Because the export prices of Chinese silk and satin are so low, the Indian textile manufacturers have suffered greatly.” The Central Silk Board along with Mysore Power Loom Silk Manufacturers' cooperative society, Karnataka Weavers Federation, Silk Trade Association (Varanasi), and Pure Silk Weavers Association (Surat) lodged an appeal to the Indian government to conduct an investigation.

China will lose the Indian market if allegations are proven

Early this year, the CCCT called for an urgent meeting at the National Silk and Satin Export Symposium, held in Chengdu city. The meeting called for national silk and satin enterprises to work together and standardize industry practices. Among the 102 related enterprises, over 30 percent are enterprises from Zhejiang province. But the difference between the Indian case and the U.S. and European case is that China will lose the India market if its response isn’t adequate, which could jeopardize the livelihood of 10 million Chinese silkworm farmers.

The Indian case is the first textile anti-dumping case in Asia. In our shrinking world, the markets around the globe are closely linked to each other. With a focus only on production, and a lack of planning, an over-supply situation will occur. Ripples from this will turn into waves, and the related industries in many counties will be affected.