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Commerce Minister Bo Xilai
gestures as he speaks to the media during a press conference in
Beijing Monday, May 30, 2005. (AP)
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In a move to safeguard thousands of jobs, China declared it will scrap
- after only 10 days - its sharply increased export duties on Chinese-made
textiles.
The withdrawal comes after Washington and the European Union clamped
more restrictions on Chinese exports, which China said are "unfair and
incorrect."
Minister of Commerce Bo Xilai told a news briefing yesterday that
export tariffs on 81 categories of textile products will be lifted,
including the 74 for which 400 per cent increases were announced.
The latest restrictions imposed by the US side will affect US$2 billion
worth of Chinese exports and 160,000 jobs, while the EU action will lead
to a loss of US$300 million exports and corresponding jobs.
"Behind each category of product in question, some
1,000 to 6,000 Chinese enterprises would feel
the pinch
," Bo said.
"We have to make corresponding policy adjustment since the EU and the
US have set controls on Chinese textile exports," said Bo.
"We must be fair to Chinese producers."
To ease the concerns of trade partners, the
Finance Ministry unveiled on May 20 a staggering
400 per cent increase on export tariffs on 74
classes of products starting on June 1.
Such products registered a sharp rise in exports in EU and US markets
in the first few months of this year after decades-old global textile
quotas were abolished on January 1.
Experts said there would be no sharp rise in exports if US and EU had
taken a step-by-step approach to abolishing the quotas.
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.
(China Daily) | 
Updated: 2005-05-31 11:33
