World should accustom with rising powers of China & India
30 Jun '05
3 min read
EU figures show imports of Chinese T-shirts rose 187 percent in the year through the first quarter of 2005.
Stephens said tariffs might slow China textile imports, but would only push jobs to other parts of Asia like Cambodia and Vietnam or other regions like Latin America or Africa.
He said the world needed to make real progress in boosting multilateral trade.
The row over textiles has added fuel to a debate over the value of the yuan, which has been held in its current range for a decade.
U.S. lawmakers and manufacturers argue the exchange rate policy gives China's exporters an unfair advantage in world markets.
The U.S. Treasury Department last month warned that China risked being branded a manipulative trading partner if it did not take significant action on its currency in the next few months.
But the World Bank has said China's cautious stance was a "legitimate choice."
On Tuesday, Dollar said he disagreed with criticism that China was manipulating its exchange rate.
Stephens said the world needed to adapt and stop viewing China and India as emerging economies.
"It is done. They have emerged," he said. "They are now in a position where they are going to get bigger, more influential and more powerful."
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