China on the way to end trade dispute
BEIJING “”mdash; China on Monday revoked plans to sharply
increase export tariffs, backtracking on a move aimed at averting a
trade war with the United States and Europe.
The government gave no explanation for the step but noted it
came after the United States and the European Union moved to
restrict imports of Chinese clothing and textiles.
European and U.S. textile makers say their livelihoods have been
threatened by a surge in Chinese exports since a worldwide quota
system ended on Jan. 1.
China imposed a 1.3 percent export tax on textiles in December,
on the eve of the end of global quotas.
However, American officials said that was too low to make a
difference.
Earlier this month, China said it would sharply increase those
tariffs.
Then on Friday, the European Union took its dispute to the World
Trade Organization.
Consequently, an immediate curb in shipments of T-shirts and
flax yarn was enforced.
According to EU figures, imports of Chinese T-shirts rose by 187
percent in the first four months of 2005, compared to the same
period last year, while imports of Chinese flax yarn rose by 56
percent.
Compiled from Bruin wire services.