China's top trade official lashed out Friday at new restrictions on Chinese textile exports imposed by the United States and European Union.
Commerce Minister Bo Xilai said Beijing expressed "strong dissatisfaction" with the new limits, saying they pose "serious threats to Chinese textile enterprises."
"It's a move of protectionism," Bo said at a news conference following a meeting of trade chiefs from the Asian-Pacific Economic Cooperation forum in the South Korean resort island of Jeju.
Earlier Friday, Bo met with U.S. Trade Representative Robert Portman to discuss the dispute over a surge of Chinese textile exports that began after quotas were scrapped last year.
Details of the 1 1/2 hour meeting meeting weren't released, although Portman described said the sides had held "very helpful, constructive discussions on the various trade issues."
Concerns over a new trade war rose earlier this week when China canceled plans to raise tariffs meant to slow export growth. Beijing said the move was in retaliation for new import controls imposed by Washington and the European Union, who have argued that the wave of Chinese textiles was seriously disrupted their domestic industries.
Bo said China had simply been following terms agreed to when it entered the World Trade Organization two years ago. "We haven't been gaining what we deserve," he said.
Still, he said China was "willing to address this issue in a rational manner" within the framework of the World Trade Organization.
Beijing had announced last week that it would quintuple export tariffs on 74 types of textile goods on June 1, hoping to persuade its trading partners not to restrict textile imports that have soared since quotas were scrapped at the end of last year.
But Beijing dropped the plans following a U.S. move to impose quotas to restrain the growth of imports of low-priced Chinese textiles. The European Union referred the textile dispute to the World Trade Organization, which triggered similar controls.
On Thursday, WTO Director-General Supachai Panitchpakdi said the dispute was still in an "initial phase" which requires further negotiations among involved parties.
"We would have to let the process take its course at the moment," Supachai told reporters.
Portman is to join U.S. Commerce Secretary Carlos Gutierrez later this week in China, where he will meet China's Vice Premier Wu Yi over the textile dispute.
Meanwhile, Bo declined to comment directly on China's plans for its revaluing its currency. However, he said "China does not want to have a large incremental increase in foreign exchanges."Associated Press
