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

19 May '05
4 min read

french industry minister patrick devedjian said china could "quickly" announce high export taxes on its textile products to prevent the imposition of emergency measures.

officials from the chinese textiles federation told him they had proposed to the government "a high and fast tax on exports", he said in beijing, adding that their recommendations were usually followed by the government.

to control its exports and placate its critics, china has already raised taxes and lowered export rebates on textile products and premier wen jiabao vowed last week there would be more measures.

the eu move followed washington's decision last week to re-impose quotas on chinese-made cotton knit shirts and blouses, cotton trousers, and cotton- and man-made fibre underwear.

us critics claim that chinese exports in general have enjoyed a massive boost from an artificially weak yuan, placing beijing under mounting international pressure to revalue the currency.

the us senate is due to vote in july on a bipartisan bill that would slap a 27.5 percent tariff on all imports from china if beijing does not scrap the yuan-dollar peg within six months.

beijing counters that it is this very pressure on the yuan that has fueled chinese exports as factories rush to beat an expected appreciation in the currency.

Economic Counsellor's Office in Egypt, Ministry of Commerce, China

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