President Hu's US visit postponed, Sino-EU textile parleys continue
05 Sep '05
2 min read
Chinese President Hu Jintao has postponed his State visit to the USA as the country is facing the aftermath of Hurricane Katrina.
Yesterday, Jintao spoke to President Bush over the telephone and both agreed to meet on the sidelines of the UN General Assembly which is to celebrate its 60th anniversary during September 14 - 16, 2005.
The meeting assumes significance as senior officials from both sides failed to evolve a suitable solution on the vexxed textile issue that has already affected business relationship between the two countries.
Meanwhile in Beijing, EU Trade Chief Peter Mandelson met senior Chinese officials led by Commerce Minister Bo Xilai, in a bid to diffuse the ongoing crisis that has led to blocking of imported Chinese textiles at the European ports.
Spokesman for Mandelson, Peter Power said both the parties had constructive talks discussing the issue of exceeded textile quotas by China.
While the US has put restrictions on certain categories of textiles and clothings; EU too, has limited underclothing and other garments as they have far exceeded the quota limits.
EU retailers are up at arms, seeking the release of withheld stocks by member states customs authorities.
Manufacturers say EU textile industries are being threatened with huge job losses and closures.
The unprecedented flood of cheap Chinese apparels and clothings followed an agreement between EU and China allowing the latter, 8 and 12.5 percent a year rise in imports of 10 categories of Chinese textiles during 2005-2007.
The present situation arose due to exceeding in limits by Chinese apparel and garment makers that were earlier set in June this year.
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