Sun, May 15, 2005 - Page 11 News List

China protests US' new textiles quotas

OWN INTERESTS The US has imposed import quotas on a variety of Chinese textiles, in a move Beijing slammed as smacking of managed trade and a blow to the WTO

AGENCIES , WASHINGTON AND BEIJING

The government reported last Wednesday that shipments of clothing and textiles from China are up 54 percent in the first three months of this year compared with the same period last year.

The EU is also seeking to implement similar quotas that come only months after the global textile trade restrictions were eliminated on Jan. 1 this year as part of WTO efforts for freer trade.

The US quotas come as China announced a US$21.18 billion trade surplus in the first four months of the year, up from a US$10.76 billion trade deficit during the same period last year.

Chinese exports from January to April surged 34 percent over the same period last year to US$218 billion, the General Administration of Customs reported.

The US government would now request formal consultations with Beijing, officials said.

But the quota will be imposed regardless by the end of May, and last at least for the rest of this year if the consultations do not resolve the matter.

US critics also argue that Chinese imports in general have enjoyed a massive boost from an artificially weak yuan currency. Beijing is under mounting international pressure to relax the yuan, which has been pegged to the greenback, but has so far stood firm.

Beijing has argued the pressure on the yuan coupled has fueled Chinese export as factories rush to beat an expected appreciation in the yuan and the reimposition of the import quotas.

"China-US economic and trade cooperation are reciprocal and has brought concrete benefits for the two peoples," Wu told the US ambassador.

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