Communist China Wants US Market Opened
By George Anderson
The People’s Republic of China has reacted strongly to the decision by the Bush administration to impose quotas on textiles imported from this communist nation.
The Chinese have called the action a violation of the World Trade Organization’s (WTO) principles of free trade, transparency and nondiscrimination, according to a report in
the Washington Post.
The U.S. administration imposed the quotas on Chinese made bras, dressing gowns, knit fabric and robes citing the WTO agreement that permits the imposition of quotas when a surge
of imports is demonstrated to hurt a particular industry.
The quota is expected to affect approximately five percent of China’s textile exports to the United States.
The world’s largest retailer, Bentonville, Ark.-based Wal-Mart, said it was too early to tell what, if any, impact the quotas would have. The retailer is expected to import approximately
$15 billion in goods, such as toys, electronics and clothing, from China this year.
Many expect that further restrictions will be placed on Chinese textiles in the year ahead.
J.P. Morgan analyst Brian Tunick told Reuters that, if this were to happen, “Retailers that rely disproportionately on Chinese apparel imports would be especially disadvantaged.”
Moderator’s Comment: How will Chinese textile imports affect clothing retailers in the U.S.?
U.S. consumers will never be able to tell the difference and the U.S. textile industry will continue its steady decline. Retailers will simply import goods,
similarly priced to China, from other developing nations. [George
Anderson – Moderator]
- China Assails Import Limits – Washington Post
- Wal-Mart says too soon to know China quota effect – Reuters/Forbes