The Chinese dragon spews fire on US and EU textile quota actions

18 May '05

2 min read

China blasted the United States and European Union on imposing quota on its textile and apparel product imports, calling them unfair and aimed at pulling down its booming textile industry.

Without hiding his displeasure, Commerce Minister Bo Xilai said the developed countries were arguing for global standards on free trade when they enjoyed absolute advantages but placing restrictions when trade threatened their interests.

Bo Xilai contended that under World Trade Organisation (WTO) rules double standards are not allowed.

According to Bo Xilai, the US and the EU are unfairly blaming China for the substantial surge of textile products imports in their respective markets, leading to their imposing quotas as protectionist measures.

China had appealed to eliminate textile export quotas this year since the WTO decided in 1995, to provide ten years period for setting up the industry and meanwhile, the US and EU should have been organized much more for that, he said.

Bo Xilai also drew attention towards the millions of Chinese dependent on the industry earning crucial foreign exchange for the country, who will be put in trouble by the US and EU safeguard measures on textile exports.

He further explained how Chinese factories are getting little profit of nearly 30 US cents on every shirt it made.

EU is likely to follow Bush administration's decision to re-impose quotas on Chinese-made cotton knit shirts and blouses, cotton trousers, and cotton- and man-made fibre underwear as the issues is under active consideration.
s, cotton trousers, and cotton- and man-made fibre underwear as the issues is under active consideration.

US critics argued that Chinese imports have enjoyed a large advantage from an undervalued yuan, bringing China under international pressure to revalue yuan, which it has already refused to do so.

In order that the textile industry circumvents the above dilemma, China has already increased taxes and reduced export rebate on its textile products as a deterrent measure.

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