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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (25540)	3/13/2005 12:16:05 PM
From: RealMuLan	Read Replies (2) \| Respond to of 116555

China acts on textiles Bloomberg News, Agence France-Presse Monday, March 14, 2005 Beijing seeks talks with EU and the U.S. BEIJING China is seeking talks with the European Union and the United States over surging Chinese clothing exports, hoping to avoid new textile restrictions, according to a report on Sunday by Xinhua, the official press agency, that quoted a government official. . The Chinese government will soon send a delegation to Washington and Brussels, said the official, Wang Shenyang, director of the China Chamber of Commerce for the Import and Export of Textiles. . China's textile exports in January and February rose 35 percent, after decades-old quotas that limited trade in 2,400 items were scrapped at the end of 2004. . Exports to the United States surged by two-thirds in January and rose by 46 percent to the EU. . The rise in exports prompted calls from textile-importing nations for new limits to be placed on China to protect domestic apparel industries. . The American Manufacturing Trade Action Committee, which represents U.S. textile companies, called for "safeguard" procedures to limit imports of pants, shirts and other items. . "Our government needs to recognize the severity of the situation," said the organization's executive director, Auggie Tantillo. . Wang cautioned Brussels and Washington against imposing any "safeguard measures," short-term restrictions allowed by the World Trade Organization under specified conditions. . "If the EU and U.S. implement measures against China's exports on the basis of one month's figures, I don't think that's right," Wang told Xinhua. . He invited aggrieved countries to "first communicate with the Chinese government and industry to discuss solutions." . Chinese exports now account for 22 percent of the U.S. apparel market, compared with 16 percent a year earlier, according to the U.S. Commerce Department's Office of Textiles and Apparel. . The European trade commissioner, Peter Mandelson, said last week that the EU was monitoring Chinese garment imports and was in contact with the Chinese authorities over the issue. . He said the EU would take "appropriate action at the appropriate time" to stem any surge in shipments to the 25 nations in the bloc. An EU delegation is expected to travel to Beijing this week to discuss its concerns. . Sun Huaibin, a spokesman for the China National Textile Council, said: "The reason that they removed the quotas on Jan. 1 was so that trade can be freer, so to go back and put more restrictions on trade is going against the free trade that everyone wants. You have to look at the overall trends; you can't implement new quotas just months after lifting them." . Sun also China had also taken steps to ensure that global markets were not destabilized by surges in Chinese exports, with a new export tax and new regulations on issuing export permits, for example. iht.com