China retains 3rd position, shoe ind awaits EU dumping outcome
12 Jan '06
3 min read
He said China understands that there are many problems wrapped up in the trade imbalance but these, which were not caused by one single side, must be solved through mutual efforts.
On one hand, the expert said, growth in China's consumption will help to solve the problem but "it is difficult to speed up consumption in China in a short period of time."
On the other hand, the US Government should lift its restrictions on exports to China so as to narrow the gap.
The United States imposes restrictions on exports of certain products involving high-technology. The growing trade surpluses have brought about various trade conflicts, such as textile disputes with the US and the EU and the EU's claim of the dumping of Chinese shoes.
Although the textile disputes have been settled through negotiations, quotas that should have been removed were re-introduced into China's textile exports.
Thousands of Chinese footwear producers are waiting to see what will happen in regards to the EU's investigation into shoe dumping.
Lu Jianhua, director of the Foreign Trade Department of the Ministry of Commerce, said that this year China is likely to encounter more trade friction, concerning its exchange rate and trade systems.
"New problems are expected to come to a number of sectors, such as textiles, household electrical appliances, and the chemical industrial and steel industries," he said.
Customs statistics said general trade grew 21 percent to US$594.8 billion in 2005 year-on-year.
marketing@alchempro.com
