Words fly thick and thin as Sino - US battle over textiles restriction

19 May '05

4 min read

"we do have a surplus with the us. however we also have (trade deficits) with many of the european countries ... and also with the southeast asian region," wei announced at a forum in singapore.

he questioned: "so how do you manipulate your currency just to get a surplus with the us?"

the us treasury report fell short at calling china was a currency manipulator under a us legal definition, which could have opened the way to us sanctions, but warned it may earn that label if "current trends continue."

us discontent at chinese trade policies has crystallized around the yuan's fixed rate currency system, with the yuan pegged for a decade at around 8.28 to the dollar.

beijing maintains that it will not be bullied by the united states or any other nation into rushing any changes.

the european union cranked up the tensions tuesday when its executive arm launched emergency measures that could lead to limits on t-shirts and flax yarn from china if beijing does not take more action to rein in its exports.

on wednesday, european commission chief jose manuel durao barroso added to the pressure, saying the eu was "ready to go further" than the emergency measures.

"in a few weeks there will be a new decision if there is not a constructive attitude" on the part of beijing, barroso warned in paris.

french industry minister patrick devedjian said china could "quickly" announce high export taxes on its te part of beijing, barroso warned in paris.

More Textiles News - China...