China – A Long-Range Question Mark

But of even bigger concern is the question of what happens in early 2005, when virtually
all quotas are eliminated for World Trade Organization (WTO) countries. One fear is that China
(already the top and fastest growing exporter to the United States) will at that time become an
even more potent competitor of low-cost, high-quality textiles and apparel.

Point to keep in mind: China’s expertise and manufacturing sophistication already equals or
even tops that of other exporters in both Latin America and the Far East. Upshot: More big changes
in trade flows are inevitable.

July 2002