A consultation mechanism will be set up between China and the United States
to exchange information and minimize problems arising in the much maligned area
of textiles.
Visiting US Commerce Secretary Don Evans said yesterday he viewed the scheme
as an encouraging development within the industry.
Officials from the Chinese Ministry of Commerce confirmed the agreement but
would not provide further details.
Evans said the bilateral channel is just part of the consensus between the
two nations to increase dialogue and progress over troubled ground in the
textile and apparel trades.
The countries will organize industry-to-industry exchanges to seek
opportunities for bilateral co-operation, including avoiding trade disputes.
"We have also agreed to hold an exhibition to promote US textile exports to
China and convene a conference that offers US states and localities the
opportunity to introduce investment opportunities in the US to the Chinese
textile industry," Evans said during a press conference.
Textile trade between China and the US is facing a huge challenge as US
textile manufacturers attribute their job losses to increases in Chinese textile
imports, which are favoured by US consumers and traders.
US-based textile companies are demanding that their government erect
safeguard barriers against Chinese exports. A decision is expected in November.
Local analysts say it could seriously jeopardize the possibility of bilateral
textile trade between the two sides.
Customs statistics show China imported US$447 million worth of US textiles
and apparel last year, up 23.04 per cent from 2001.
Growth hit 44.5 per cent in the first six months, posing another sharp
increase.
Answering Chinese complaints about US curbs on high-tech exports, Evans said
high-tech trade will improve once the US gets access to Chinese companies that
want to buy the equipment. Washington wants to make sure technology like
supercomputers and aircraft stamping machinery is not used for military
purposes.
"As soon as we can get an end-use visit agreement in place, I feel confident
that it will improve the environment, improve the conditions for increasing
high-technology trade," Evans said.
Local officials say China hopes to maintain an export/import balance and has
been working hard to achieve that goal.
When meeting Evans on Tuesday, Commerce Vice-Minister Yu Guangzhou said: "We
will encourage local companies to purchase from the US and try to expand imports
from the United States."
But in order to achieve the goal, Yu stressed the US should expand its
coverage of products allowed to be exported to China.
In relation to a proposal by a bipartisan group of US lawmakers to revoke
China's normal trade status and impose a 27.5 per cent tariff on Chinese goods,
Evans said the government is not in favour of the plan.
But he glossed over a claim that a key driver for booming exports to the
United States is US firms which have invested in Chinese factories to serve
their customers back home.
