CAIRO: The textiles committee at the Egyptian Federation of Commerce Chambers has sent a memorandum to Prime Minister Ahmad Nazif to protest against setting up a Chinese industrial zone for readymade garments in the 10th of Ramadan City, east of Cairo.
Hussein Rashdan, head of international relations at the committee, said on Thursday that his group would refuse the establishment of the specialized industrial zone in the 10th of Ramadan City, which is part of the Qualified Industrial Zones agreement.
He expressed fears that the new industrial zone would curb the chances for Egyptian investors to increase their exports to the United States as a result of price competition with the Chinese products.
The memo also points to fears that Chinese textiles production would undercut Egyptian products in the domestic market and increase the employment of Chinese workers at the expense of Egyptians.
Minister of Trade and Industry Rachid Mohamed Rachid had approved a memo of understanding with the Chinese government on setting up a textiles industrial zone in Egypt.
According to data from the Ministry of Trade and Industry, joint venture investments with China in Egypt amounted to $70.6 million as of March 2006.
