|
Textile limits imposed to ease trade concerns
By Dai Yan (China Daily)
Updated: 2004-12-12 23:29
Textile concerns among China's trading partners in the coming integration of
global trade have made the nation determined to control its exports.
Ministry of Commerce spokesman Chong Quan said Sunday: "We will impose export
duties on certain textile products."
The duty will be collected based on quantities of textile goods rather than
on value, as a way to encourage high-end textiles, said Chong.
Th move is a key element among eight measures taken by the ministry to ensure
a smooth transition to a quota-free age in global textile trade.
All quotas restricting textile and clothing trade between the World Trade
Organization (WTO) members are to be eliminated by December 31, 2004, according
to the Agreement on Textiles and Clothing.
Among the eights measures, Chong said governments will release textile
exporting information in a timely manner, guide enterprises to export in an
orderly way, and encourage industrial self-discipline.
"We will encourage Chinese enterprises to invest abroad, and provide them
with policy support in their foreign investment," he said.
Public information will be available on investment increases in the textile
industry to prevent investment over-heating and the overlapping of construction,
he said.
Some foreign counterparts have predicted Chinese textile goods, supported by
cheap labour costs, will swamp the world market and force them out of the
market. About 72 textile and apparel groups from 36 countries made the "Istanbul
Declaration" to urge the WTO to extend the quota-free deadline until December
31, 2007.
Foreign governments also put pressure on the Chinese Government to cap its
textile exports. Grant Aldonas, the Commerce Department's undersecretary for
international trade of the United States,
visited China in September to seek an agreement on voluntary caps. The
European Union also urged Premier Wen Jiabao to exercise "moderation" once the
import quota system is lifted on January 1. Wen met with officials during his EU
trip last week.
The United States and the EU are expected to further abolish quotas on 126
items by 2005, which account for about 60 per cent and 61 per cent of their
total textile imports, respectively.
In fact, the trade volume put under quota restriction accounts for about 70
per cent of total textile trade in the world, and the trade volume that is free
of quota restriction is about 30 per cent.
Liang Xing, president of the Shandong Weiqiao Textile Company, said the
decision is welcomed, noting it will reduce trade disputes and encourage export
of high added-value.
"I prefer a steady growth rate rather than the fear of uncertainty because of
a dispute," he said.
At a closed-door meeting on the post-quota period in October, an official
from the Ministry of Commerce asked whether companies would support stricter
industry management after quotas are lifted. Seventy to 80 per cent of the 400
company representatives present raised their hands.
China faces a "safeguard" threat, a provision in the WTO rules that allows
the United States or any other WTO member, to limit imports on the grounds that
its local market will be disrupted.
The Bush government agreed to consider applications made in November by
members of the US textile industry to impose safeguard measures on shipments of
Chinese-made cotton pants, shirts and sheets to the United States. Chinese
officials believe that is an abuse of safeguard measures.
| |
 |
|
|
|
|
Today's
Top News |
|
|
|
Top China
News |
|
|
|
|
|
|
|
|
|
