'We must be fair to Chinese producers' stated Commerce Minister Bo Xilai
02 Jun '05
4 min read
Bo said he had hoped the earlier announcement of steep tariff rises would help ease concerns of trading partners, but "it is a pity that both the EU and the US failed to accept the policy."
The China Textile Import and Export Chamber of Commerce said the adjustment will help ease the burden on Chinese enterprises, which are already operating on razor-thin profit margins.
However, Bo warned enterprises to prepare for further restrictive measures and adapt to a new international trade environment.
Bo said he had noted that some domestic enterprises, under great pressure from the restrictive moves, were calling for retaliation measures, but he ruled out the possibility of a trade war.
"We do not want to see a trade war," he said. "I do not believe retaliation to be the only way (forward) for us. A healthy trade relationship is good for both sides," he added.
Although Bo stressed that China still hopes to solve the textile row through consultation, he said China reserves the right to resort to the World Trade Organization (WTO) to adjudicate the dispute since controlling measures not only violate WTO principles, but are also prejudicial against China.
"We have the right to submit the case to WTO. Whether we will resort to the WTO, and when, is completely up to the Chinese side," he said.
The EU decided last Friday to put the dispute to the WTO and attempted to launch safeguard measures on two categoriattempted to launch safeguard measures on two categories of Chinese textiles-T-shirts and flax yarn-while Washington has begun imposing measures aimed at capping growth of cotton trousers, cotton-knit shirts and underwear.
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