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China denounces Us decision to impose textile quotas

AFP, Beijing
China's Premier Wen Jiabao on Monday slammed a Us decision to impose quotas on three types of Chinese textile imports, saying the restrictions were "not beneficial" to trade relations.
"The restrictive measures taken by the United states against three Chinese textile products are not beneficial to the healthy development of sino-Us trade relations," Wen said, according to the Xinhua news agency.
Wen added: "It is normal to see some problems in sino-Us trade but we should not politicize these problems."
Under pressure to preserve jobs, the Us government's Committee for the Implementation of Textile Agreements (CITA) on Friday said it was re-imposing a quota on three categories of Chinese textiles to curb a flood of imports.
The three categories are cotton knit shirts and blouses, cotton trousers, and cotton- and manmade fibre underwear.
The move is likely to sharply escalate trade tensions with the Asian giant.
CITA is acting partly on its own initiative and partly in response to complaints from Us textile manufacturers that Chinese imports have shot up since global quotas that
regulated the trade were scrapped on January 1.
According to the Us Commerce Department, imports of Chinese underwear have gone up 366 percent since January 1, cotton-knit shirts are up 1,350 percent and cotton trousers jumped by more than 1,500 percent.
That deluge, the NCTO argues, has cost 16,600 Us textiles jobs with the closure of no fewer than 18 plants since the start of the year.
Us critics argue that Chinese imports in general have enjoyed a massive boost from an artificially weak yuan currency. Beijing is under mounting international pressure to revalue the yuan but has so
far stood firm.
The Us decision followed an investigation which coincided with a parallel probe by the European Union into nine categories of Chinese textile imports and which may also lead to restrictions being enforced.
China has reacted angrily to the investigations. In early May, Trade Minister Bo Xilai accused the United states and the European Union of "double standards" in their international trade dealings -- arguing for free trade but not practicing it.