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China blasts 'protectionist' EU signals over textiles

AFP, Beijing
China, reacting to a request from the European Union for formal talks with Beijing over two types of textile imports, sunday blasted what it called the EU's "protectionist signals".
"China is very dissatisfied with this," commerce ministry spokesman Chong Quan said in a statement posted on the ministry's website, criticising the EU's call for formal talks.
The European Commission said Friday it had asked the Chinese authorities for formal consultations
on flax yarn and T-shirts, bringing the EU a step closer to imposing limits.
Under World Trade Organisation (WTO) rules, China must now take steps to drastically limit the export of the two types of clothing.
They are to fall to "a level no greater than 7.5 percent above the amount that entered the EU market during the period from March 2004 to February 2005."
Beijing has 15 days to take the measures, failing which Brussels is entitled to slap its own limits on Chinese textiles.
That could be tough, since so far
in 2005, European imports of T-shirts with a 'Made in China' label have jumped by more than 160 percent from a year ago, while flaxyarn imports had surged more than 50 percent, according to EU data.
"Based on just three months of preliminary statistics, the EU has acted on its own, deciding to launch investigations and impose restrictions," Chong said.
"It's an inaccurate judgment and an incorrect decision It will not only send the wrong protectionist signal to Europe's businesses, it also seriously violates the rights
enjoyed by Chinese enterprises amidst the integration of the global textile trade," he said.
The Chinese reaction sunday seemed to negate remarks made a by an unnamed diplomat last week that China had accepted the principle of quotas for T-shirts and flax yarns.
But China's acceptance of quantitative limits on the two textile categories, or any others, would mark an about-face in Beijing's position until now as Commerce Minister Bo Xilai has ruled out restraints on export volumes.