The flood of Chinese exports following the end of the global textile trade quota system has set off protectionist alarms in the West and threatened the jobs of millions of workers in poorer countries.
The US and the EU last week triggered processes to limit textiles imports from China, sparking an angry response from the rising Asian giant that it would not be pushed around on the issue.
Elsewhere in Asia, countries that had long enjoyed the benefits of the trade quotas, such as Bangladesh, Cambodia, Sri Lanka and Vietnam, have warned their textile industries and the people they employ are fast losing out to China.
However the end of the quota system has not been all bad news, with more competitive and better prepared industries in the Philippines, Indonesia and India reporting they are weathering the China storm.
The event that threw the US$400-billion-a-year global textile industry into turmoil was the end of the 1974 Multifiber Arrangement on Jan. 1 this year, which lifted quotas and restrictions on exports.
China, already the world's largest exporter of clothing at the beginning of this year with a 28 percent share of the market, has enjoyed a phenomenal boom following the end of the quotas.
The US government took its first step toward curbing Chinese textile imports on Monday last week by announcing a review to determine whether the recent surge in Chinese imports had disrupted the US market.
US officials said Chinese imports of cotton knit shirts and blouses, cotton trousers and man-made-fiber underwear had surged by about 1,250 percent, 1,500 percent and 300 percent respectively, following the end of the quotas.
The US government review move could lead to Washington limiting growth in Chinese imports to 7.5 percent through 2008, under a clause China agreed to upon entering the WTO.
The EU adopted a similar measure on Wednesday when it unveiled "alert levels" at which it would consider limiting Chinese clothing imports, but resisted pressure from Europe's textile industry for more drastic action.
In response, Chinese commerce ministry spokesman Chong Quan (崇泉) on Thursday warned the actions of the EU and the US violated free trade principles and could jeopardize global textile trade.
The responses of all three parties have sparked concerns that tit-for-tat action could lead to a trade war.
"The danger is that the textile issue becomes the straw that breaks the camel's back," said Ernest Bower, a partner with Washington-based consultancy BrooksBowerAsia.
Bower said the EU and the US "should not impose new measures on China" if they were genuine in their free trade principles.
"If the US and Europe favor free trade, they must be consistent and not fight rear-guard actions like those being proposed by protectionist groups," he said.
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
A US Marine Corps regiment equipped with Naval Strike Missiles (NSM) is set to participate in the upcoming Balikatan 25 exercise in the Luzon Strait, marking the system’s first-ever deployment in the Philippines. US and Philippine officials have separately confirmed that the Navy Marine Expeditionary Ship Interdiction System (NMESIS) — the mobile launch platform for the Naval Strike Missile — would take part in the joint exercise. The missiles are being deployed to “a strategic first island chain chokepoint” in the waters between Taiwan proper and the Philippines, US-based Naval News reported. “The Luzon Strait and Bashi Channel represent a critical access
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College
RSS