NYT: China Relents, and Promises Textile Tariffs

[DeepModem Mom]

China Relents, and Promises Textile Tariffs
By KEITH BRADSHER

Published: December 13, 2004


HONG KONG, Monday, Dec. 13 - The Commerce Ministry in China announced Sunday night that it would impose tariffs on some textile exports, a step that could avert a trade war with the United States and the European Union over a new influx of low-cost Chinese garments that had appeared likely to flood Western markets starting Jan. 1.

The ministry's Web site, where the announcement was posted, did not specify the level of these export taxes or what textiles would be taxed. If the tariffs are not high enough to limit the competitiveness of Chinese exports, then the Bush administration could still proceed with recent threats to impose new limits on shipments by China.

The Chinese decision nonetheless represents the first sign of compromise on the contentious issue by China, and appears to represent a victory for the Bush administration. The administration has been under strong pressure from apparel manufacturers and their workers in Southern states, who had warned of large-scale layoffs if nothing was done.

A complex system of quotas has limited international trade in textiles and apparel for decades but will expire on Jan. 1 under an agreement worked out in 1993 as part of the creation then of the World Trade Organization. Chinese manufacturers have been expanding their factories in preparation to increase exports once the quotas are lifted....


http://www.nytimes.com/2004/12/13/international/asia/13tariff.html

[kodi]

1. china gave up nothing. they had planned forand had expected this

so, the US slows goods for a few months, what happens then? a tidal wave of cheap chinese goods.

chinese goods are competitive in significant part because the chinese textile companies are given massive government subsidies in providing health care to workers, cheap electicity and power, and are allowed to operate at staggering short-term losses because they are propped up by the central bank of the chinese government to keep employment high.

US companies would be competitive under such circumstances and help from the government and the banking industry.

the chinese are using trade as a national defense weapon against the US and are crippling the US economy far greater than if they had lofted missiles at the west coast.

[CHIMO]

2. Textile limits imposed to ease trade concerns

Textile concerns among China's trading partners in the coming integration of global trade have made the nation determined to control its exports.

Ministry of Commerce spokesman Chong Quan said Sunday: "We will impose export duties on certain textile products."

The duty will be collected based on quantities of textile goods rather than on value, as a way to encourage high-end textiles, said Chong.

"We will encourage Chinese enterprises to invest abroad, and provide them with policy support in their foreign investment," he said.

http://www.chinadaily.com.cn/english/doc/2004-12/12/content_399553.htm

[msgadget]

3. Trade imbalance? What trade imbalance?

As IF the weak dollar plan - even with fiscal responsibility - could overcome this. Quick, somebody tell me how "a smooth transition to a quota-free age in global textile trade" is a good thing.

Mexico is even scared. Oh my, wherever will all those unemployed workers migrate? :think: