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TXT版90Theanalysisalsoexaminedother“proxies”forChinesebehaviorinapost-quotaworld.Itlookedat
ChinesepenetrationoftheJapaneseandAustraliantextileandapparelmarkets(whichhavenoquota
regimeinplace)andatimportsintotheU.S.ofsimilarmanufacturedgoodswhichhavenotbeenrestrained
byquotas.BothproxiesfoundChinesepenetrationofthesemarketsat70percentandabove.Theproxies
belietheoft-statednotionthatimportersorretailerswillseekto“spreadtherisk”bysourcingfrom
multiplemajorplatforms.Ineachcase,importersorretailersinsteadembracedthecostsavingsavailable
fromChinaandfocusedalmostalloftheirsourcingthere.
TheanalysisillustratestheneedfortheU.S.governmenttomovequicklytoinitiateuseofthespecial
ChinatextilesafeguardtorestrainChineseimportsoncequotasareremoved.Withoutearlyand
comprehensiveuseofthespecialtextilesafeguard,ChinawillquicklycometodominatetheU.S.
textileandapparelmarket.
Inaddition,thereportnotesthatChineseexportsubsidiesintheformofChinesecurrencymanipulation,
statesubsidizationandtheuseofexporttaxrebateshavegivenChinaanunassailableedgeintextileand
appareltrade.
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