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China says US, European blame unfair, urges earlier settlement of textile trade dispute |
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Wednesday,May 18,2005 |
It is unfair for the United States and European Union to blame China for the fast influx of Chinese- made textiles in their markets and the three sides should work together for an early settlement of the trade dispute, China's commerce minister and industry insiders said on Wednesday.
Addressing the Fortune Global Forum in Beijing, Minister of Commerce Bo Xilai criticized the U.S. and E.U. for pretending to be "pragmatic" in multi-lateral trade, abusing the rules of the World Trade Organization (WTO) and violating their own principles of free and fair trade.
"It's also unfair for the US and EU to impose, or intend to impose, restrictions on Chinese textile products," he told an audience of international business people.
Bo said some developed nations have failed to abide by WTO stipulations that requested for them to gradually ease the quota system for the import of textile and garment products in the 10 years starting from 1995, keeping 70 to 90 percent of the most important quotas in place until the end of last year.
"This was why China's exports have soared in the first quarter of the year," he said.
The European Union (EU) Trade Commissioner Peter Mandelson said Tuesday that the EU would launch formal consultations with China about T-shirts and flax yarn imports that have put textile industries in some of its member economies at a competitive disadvantage.
When asked to comment on Mandelson's remark, a Chinese Ministry of Commerce official, who declined to give his name, said the ministry would seriously consider Mandelson's words.
"Mr. Mandelson made his remarks at a press conference, considered by the ministry an informal occasion, so we will wait for the EU's formal move and make our decision," the official said.
EU's threat came at the heels of the United States' decision to re-impose quotas on Chinese-made cotton trousers, cotton knit shirts and underwear, announced by US Secretary of Commerce Carlos Gutierrez on May 13.
"Escalation of such friction will impair the interests of Chinese exporters, increase costs for importers and do little to help their domestic textile industry," said Zhang Xiaoji, a research fellow with the Development and Research Center of the State Council, China's Cabinet, in a telephone interview with Xinhua.
He said importers in many developed nations are increasingly relying on the quality, diversity and cost-effectiveness of Chinese-made textiles, as well as China's unparalleled production capacity. "A survey conducted by the US International Trade Commission in 2003 said Chinese products are the top choice for US retailers and consumers alike," he said.
"Restrictions on Chinese exports, therefore, will impair these people's interests because they will have to turn to other exporting countries, very few of which can compete with China right now in terms of quality, price and diversity," Zhang said.
His view was echoed by Song Hong, a researcher with the Chinese Academy of Social Sciences.
"As far as the US and EU are concerned, their domestic textile industries are already at a competitive disadvantage," he acknowledged. "They cannot increase their own output by capping imports from China -- this only leads to irrational redistribution of global resources and heavier costs."
According to Song, an expert on international trade, it is not wise to let the textile dispute hinder the overall growth of global trade. "China's textile industry is largely involved in processing trade and is open to the participation of other countries."
Despite the US decision to limit imports from China, US President George W. Bush said Tuesday that China membership in the World Trade Organization has been "a good thing" for America. "Our exports to China have improved 81 percent since China entered the WTO," Bush was quoted as saying by Agence France Presse.
The China Textile Industry Association has also refuted the US and EU intention to reverse the trend of the market. "China has done all that it can to curb the fast growing exports and abide by its WTO commitments," said the association's vice president Gao Yong. "The developed nations must live up to their own commitments, too."
Gao said his organization is also working to help domestic textile companies improve their product mix, diversify export products and further explore the international market to sharpen their competitive edge.
"Many people mistakenly believe Chinese-made textiles and garments are largely labor-intensive products that contain little added value," Gao told Xinhua. "In fact, most domestic firms have introduced state-of-the-art equipment and technologies to ensure their products are both cozy and environment-friendly. These products have gained more added value even than TV sets and other mass produced mechanical and electrical appliances."
China has been making efforts to adjust the mix of its textile industry, and as a matter of fact, enterprises in the US and EU also need the readjustment of this kind to transfer some labor- intensive industries elsewhere, said a senior manager surnamed as Gu with Shanghai Silk Group.
"Government protection cannot always help them survive the fierce competition in textile trade," Gu added.
Ministry of Commerce statistics say China's exports of textiles and clothing totaled 22.4 billion US dollars in the first quarter of 2005, up 19.1 percent, but 5.6 percentage points less than the growth rate over the same time last year.
As the largest producer and exporter of textiles and clothing in the world, China's textile exports totaled 95.1 billion US dollars last year, making up 16 percent of the world total.
(Source: Xinhuanet) | |
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