Increasing tension on textiles: China accuses Us and EU of "unfair" action
Beijing (AsiaNews/Agencies) China responded in kind on Wednesday to the United States and European Union, accusing them of taking "unfair" and "protectionist" actions to counter booming Chinese textile exports.
Commerce Minister Bo Xilai blasted developed countries for arguing for global standards on free trade when they enjoyed absolute advantages but then placing restrictions when trade threatened their interests.
Under World Trade Organisation (WTO) rules he said such "double standards are not allowed".
The US and the EU were unreasonably blaming China for rapid growth in its exports, were placing restrictions on its products and taking "protectionist" actions, according to Mr Bo.
"This is unfair," he said, adding that these kind of moves "undermine the solidness of WTO rules and generate a negative impact on the ongoing round of [WTO trade liberalisation] talks."
Earlier this month Mr Bo warned that imposing restrictions on China would influence the confidence of all developing countries in a multilateral trading system.
The mainland has argued that since the WTO agreed in 1995 to remove textile export quotas this year, giving member states 10 years to prepare so as to avoid large trade disruptions, the US and EU should have done more to be ready.
Mr Bo also pointed out that the livelihoods of tens of millions of Chinese workers were threatened by US and EU safeguard measures on textile exports.
"Chinese enterprises are only getting a small profit on textile exports," Mr Bo said at the Fortune Global Forum here, claiming China was only making about 30 US cents (HK.33c) on every shirt it made.
"The textile industry, which has a low added-value, has a bearing on the livelihoods of tens of millions of low-income workers in China," he said.
The US and EU contend that the flood of Chinese textiles swamping their markets since the global quota system ended on January 1 threatens millions of jobs in their countries.
The European Union upped the ante 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.
"The effect of the urgency procedures will be that the EU will request formal consultations with China at the WTO on these two categories," EU Trade Commissioner Peter Mandelson said in unveiling the action allowed under WTO rules.
It followed Washington's move 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 imports in general have enjoyed a massive boost from an artificially weak yuan, placing Beijing under mounting international pressure to revalue the currency, which it has so far refused to do.
The Senate is due to vote in July on a bipartisan bill that would slap a 27.5 percent tariff on all Chinese imports if Beijing does not scrap the yuan-dollar peg within six months.
Beijing counters that it is this sort of pressure on the yuan that has fueled Chinese exports as factories rush to beat an expected appreciation in the currency, which is pegged to the dollar at around 8.28.
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, without saying when.
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23/08/2016 11:50
