There are signs the government will help companies such as Changshu Shengtian, which has about 1,000 employees and is typical of the Chinese manufacturers that US and European law makers have said relied on an undervalued currency to compete. Changshu Shengtian sells T-shirts to retailers, including Wal-Mart Stores Inc, for typically US$1 to US$2 apiece, of which about 5 percent is profit, Tang said.

Rebates for textile shipments will be increased to 13 percent from 11 percent this month, and those for clothing to 15 percent from 11 percent, the official China Securities Journal reported last week. The payments were cut in July last year to help ease trade frictions with the US and Europe.

China's export growth cooled to 18 percent in June.

(Shanghai Daily July 18, 2008)