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Cheap Chinese copies shrink India's silk sari industry

Obama meets Chinese envoy ahead of Hu visit
Washington (AFP) Jan 4, 2011 - US President Barack Obama met Tuesday with Beijing's foreign minister ahead of a visit by Chinese President Hu Jintao in which a currency dispute was to top a wide-ranging agenda. Foreign Minister Yang Jiechi was at the White House discussing issues ranging from US-China trade to Iran, North Korea and the upcoming referendum in Sudan with Obama's advisors when the president came into the room. "The president joined the meeting and reaffirmed his commitment to building a bilateral relationship that is comprehensive in scope, positive in achievement, and cooperative in nature," the White House said. "The president said he looked forward to the visit of President Hu and to the US and China working together effectively to address global challenges," it said in a statement.

Obama is hosting Hu in the White House on January 19 against the backdrop of a simmering currency dispute that is likely to top an agenda that will include recent tensions on the Korean peninsula and human rights issues. The White House has signaled it will keep up pressure on Beijing to allow its yuan currency to appreciate. Critics say China keeps the yuan undervalued to gain an unfair trade advantage that has cost thousands of US jobs. White House spokesman Robert Gibbs on Monday outlined the administration's priorities in a question-and-answer session on the online microblogging service Twitter. "They must do something abt their currency -- trade, N Korea and rights on agenda," Gibbs wrote in Twitter shorthand. In November, US National Security Adviser Tom Donilon told reporters in Japan that Hu's visit would be a good time to assess "the quantum of progress" on the currency issue.

And in recent weeks Chinese authorities appear to have allowed the yuan to gradually appreciate. The People's Bank of China set the yuan central parity rate -- the middle of the currency's allowed trading band -- at 6.6227 to the dollar Friday, meaning it has appreciated about three percent since June 19. Obama and Hu last met in Seoul on the fringes of the Group of 20 summit in November and are due to hold talks at the White House and a state dinner during the Chinese president's visit. But serious divisions between the two largest economies will linger beneath the diplomatic pageantry, including Washington's repeated demands that China rein in its communist ally North Korea. Tensions soared on the divided peninsula in the wake of Pyongyang's deadly assault on a South Korean border island in November. The visiting Chinese foreign minister was to meet with US Secretary of State Hillary Clinton on Wednesday and had held closed-door talks with US Treasury Secretary Timothy Geithner earlier on Tuesday. US Secretary of Defense Robert Gates is due to visit China next week, a year after Beijing snapped off military relations with Washington in protest against a multibillion-dollar US arms package for Taiwan.
by Staff Writers
New Delhi (AFP) Jan 5, 2011
For centuries, the stunning silk saris woven by hand in the holy city of Varanasi have been prized by Indian women, but an influx of cheap Chinese-made copies is destroying the local industry.

Badruddin Ansari, one of the few weavers still in business, says that most of his former colleagues now struggle to eke out a living as vegetable sellers, tea stall operators or rickshaw drivers.

"When a person loses his home and his livelihood, where can he go?" he asked angrily.

"I hope the art of making Banarasi saris will survive. The government must ban these imported saris or put a heavier duty on them to save the domestic industry."

Banarasi silk saris -- named after Banaras, the former name of Varanasi -- are famed for their embroidery and still sought after by northern Indian brides for their big day, even though the dresses are now normally made in China.

Rajni Kant, director of the Human Welfare Association, a non-profit group working with weavers in Varanasi since 1993, has seen the damaging effect of Chinese imports.

"To give just one example, a 55-year-old man I know started weaving at the age of 15," he said. "He quit the handloom three years ago and now works as a manual labourer. There are hundreds of thousands of people like him."

More than 60 per cent of the handloom industry has collapsed in Varanasi since 2003, according to Kant.

In 2007 reports emerged of weavers in Varanasi selling their blood to make ends meet as Chinese imitation saris flooded the market, costing about 2,500 rupees (55 dollars) compared with at least 4,000 rupees for an original.

Official import figures for saris from China are low, but textile experts say much of the material is imported as fabric, not as tailored saris, and a lot makes its way into India as contraband via Nepal.

"It's doubtful whether these imitation saris even enter India as saris. They are probably imported as fabric, bales of silk which traders then cut and sell as saris," said Ritu Sethi, head of the non-profit Crafts Revival Trust.

Weavers say that Chinese factories produce huge amounts of silk fabric at a government-subsidised prices and send the finished cloth to India.

Registered Indian imports of silk fabrics from China increased by 23 percent between 2008-09 and 2009-10, amounting to nearly 6.4 billion rupees despite India imposing an anti-dumping duty on silk fabric.

A. K. Shukla, deputy director for the Varanasi office of India's Development Commissioner for Handlooms, told AFP that the 14 percent duty on silk fabric was too low.

"We have to re-examine the issue," he acknowledged.

The Indian government granted a patent to protect silk saris woven in Varanasi in 2009, but the certification has made little difference on the ground, weavers and lobby groups told AFP.

"We have a well-meaning government but the GI (geographical indication) act should get more teeth. Not one person has been hauled to jail yet for making or selling imitation Banarasi saris as the real thing," Sethi said.

Many sari makers accept that customers know nothing of the made-in-Varanasi certificate scheme and often cannot tell the difference between an import and a genuine product.

Ansari, who runs a sari-weaving business with 400 weavers, said he could not predict how long he would be able to continue but that he was determined to keep going as long as possible.

"We can't become dependent on China for everything," he said.



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