The pressure continues to build up on China as the European Union (EU) executive commission is now requesting formal talks with the country about its textile industry.
The EU aims to discuss the amount of Chinese flax yarn and T-shirts being imported into Europe. If China doesn’t sufficiently cap its own exports of these items, the EU will impose a limit on imports of them.
The commission has asked China to restrict exports to “a level no greater than 7.5% above the amount that entered the EU market during the period from March 2004 to February 2005”.
Commission spokeswoman Claude Veron-Reville said there would be further talks on Monday and in the coming week “when discussions can be expected to intensify at technical and political levels”.
“This procedural step does not preclude or displace the intensive discussions between China and the EU,” she said. “A mutually satisfactory agreement could also be concluded” within the next two weeks.
China is facing similar issues with the United States, which already set limits on certain textile import categories. China has dominated the textile industry since quotas ended in January.
Last week, China said that it would raise tariffs on 74 categories of textile exports in an effort to ease concern from the European Union and United States, but neither were satisfied with this move.
“This has found broad support among an overwhelming majority of our member states,” said EU trade chief Peter Mandelson regarding the proposed talks. “I want to find a mutually satisfactory agreement with the Chinese authorities.” Mandelson is meeting China’s textile negotiator, Gao Hucheng today in Brussels. China has already said that tariffs wouldn’t be put on any goods that are subject to import curbs.
There has also been a lot of tension between China and the United States over China’s currency. The U.S. recently gave a China a six-month deadline to make the currency more flexible, but China said that it could not do so in a set timeframe.
Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
