China on the way to end trade dispute
BEIJING — China on Monday revoked plans to sharply increase export tariffs, backtracking on a move aimed at averting a trade war with the United States and Europe.
The government gave no explanation for the step but noted it came after the United States and the European Union moved to restrict imports of Chinese clothing and textiles.
European and U.S. textile makers say their livelihoods have been threatened by a surge in Chinese exports since a worldwide quota system ended on Jan. 1.
China imposed a 1.3 percent export tax on textiles in December, on the eve of the end of global quotas.
However, American officials said that was too low to make a difference.
Earlier this month, China said it would sharply increase those tariffs.
Then on Friday, the European Union took its dispute to the World Trade Organization.
Consequently, an immediate curb in shipments of T-shirts and flax yarn was enforced.
According to EU figures, imports of Chinese T-shirts rose by 187 percent in the first four months of 2005, compared to the same period last year, while imports of Chinese flax yarn rose by 56 percent.
Compiled from Bruin wire services.