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Foreign trade official Lu Jianhua says trade hit due to US textile restrictions

01 Aug '05
10 min read

Ques: What are the basic standpoints of the Chinese government on the US restrictions?

Ans: Since May, the US government successively applied restrictive measures on 7 categories of Chinese textile products including cotton trousers and launched investigations on 6 other categories including trousers of wool. The investigations are covering more categories recently. The Chinese government firmly opposes all the above mentioned initiatives of the US.

On the basis of careful analysis of the relevant cases, the Chinese side finds that the restrictive moves of the US conflict with the fundamental spirit of trade liberalization that the WTO advocates, and the preconditions set forth in China's WTO accession legal document for applying Paragraph 242. These actions have infringed the due rights of the Chinese businesses. Only 4 months after the realization of the global textile trade integration, the US has started to exert restrictions on Chinese textile exports on the basis of short-term and inaccurate data, which severely damages the multilateral trading system. The Chinese government reserves the right to take further steps under the WTO framework.

Ques: China and the EU have reached an understanding on the textile issue. Now different parties pay great attention to the consultations between China and the US. Could you tell me something about the China-US textile consultation and China's positions in this respect?

Ans: Since the US application of restrictive measures on the Chinese textile exports, the leaders of the State Council pay great attention to it and the difficulties of the Chinese textile companies in production and operation as the result of the US abuse of Paragraph 242. On many different occasions, MOFCOM and other relevant departments expressed China's standpoint of firm opposition to the US restrictions.

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