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China was angry at US quotas
http://www.sina.com.cn 2003/11/20 11:27  Shanghai Daily

  China struck back at the United States over a cap on some textile imports yesterday, saying the move ran against the spirit of free trade and hinting at possible retaliation.

  "The Chinese government expresses deep regret and firmly opposes this decision," the Ministry of Commerce spokesman Chong Quan said in a statement yesterday.

  "As a WTO member, China reserves the right to lodge lawsuits with relevant organizations of the WTO to safeguard the interests of Chinese industries," he said.

  Chinese Vice-Foreign Minister Zhou Wenzhong yesterday summoned US Ambassador to China Clark Randt to express concerns over the US decision on imposing quotas on knit fabrics, bras and robes it imports from China.

  Zhou said the Chinese government is shocked at and expresses dissatisfaction with the US decision, which had been made despite strong opposition from the Chinese side.

  The US administration, ignoring China's strong opposition, misinterpreted and abused the restriction measures against Chinese textile products, and made the decision to impose restrictions, which runs against relevant legal documents on China's WTO entry as well as WTO principles on free trade, transparency and non-discrimination, and sends the wrong signal to the US textile sector and other WTO members, said Zhou.

  The Chinese government reserves its right to take further actions, he said.

  The expression of dismay came hours after Dow Jones Newswires reported that China had canceled its second buying trip to the United States. A source arranging the planned delegation told the agency that the trip was scrapped after Washington announced the quotas.

  The United States estimates that its trade deficit with China will expand to more than US billion this year.

  Chong said the American textile industry had "failed to prove" that its problems are caused by China.

  The US decision affects less than 5 percent of China's textile exports to the United States and won't come into effect for three months.

  The quotas would cap the rise in Chinese textile shipments at 7.5 percent above the total for the last year or so, and would be in place for a year.

  The move stoked fears Washington may be shifting to more protectionist policies, helping push the dollar to record lows against the euro overnight.

  Last week, China's first trade delegation signed deals to purchase US automobiles, jet engines and commercial aircraft worth more than US billion.

  Dow Jones said the canceled delegation's "Made in America" shopping list had included agricultural goods, such as soy beans and cotton, as well as chemical fertilizer, aluminum and telecommunications products. The group had planned to leave yesterday for the 10-day trip.

  Some Chinese business groups called for retaliation.

  "I think we should react somehow and call on the government to do something," said Shi Jianwei, executive vice president of the China Cotton Association and head of the China Cotton and Jute Bureau.

  China's Chamber of Commerce for Import and Export of Textiles said in a statement the US move would "ruin the fundamental interest of Chinese textile exporters" and hurt American consumers.

  The chamber also said China's imports of US fabric and raw materials have skyrocketed this year, jumping nearly 150 percent year on year to hit nearly US million in the first nine months.




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