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If you have not heard about it, Jan 1 2005 is the date where quotas for textile are abolished. It means that there will not be a limit on imports to the US. There is strong pressure on the US to do something about it but it seems that Chinese has moved first by imposing export taxes, which seems smart as it
1) Allows them rather than US to collect any tariff
2) Takes pressure off Bush to do anything
3) Prevent US action which could prompt hardliners in Chinese government to take retaliatory trade actions
4) Prevent further pressures on the Chinese currency to appreciate, after all its foreign reserves has been growing by $10 billion a month for the past 2 years. Generally they keep their currency fixed by buying US currency, which in term usually means purchase of US government debt.

On the producer side in US, eventually most of them will have to shut down unless they can find a way to drastically reduce cost. On the consumer side on the other hand, one could expect cheaper clothes prices, which would in the long run improve the efficiency of the economy.