Both the European Union and the United States announced probes into textile and apparel imports from China on Thursday, increasing the prospect of protective measures being put into place.
The European Commission confirmed that it would launch a 60-day investigation into nine categories of Chinese textile imports to the EU, including T-shirts and blouses.
It had been proposed by EU Trade Commissioner Peter Mandelson, who claimed that Chinese products have disrupted the European market and that the EU should impose protective measures.
The Chinese government described the EU decision as a violation of WTO rules and said it would hold informal talks with the EU next week on the matter.
The WTO has urged both sides to talk through their dispute amid fears that an outright clash would be a severe test for the global trade body. It also said that two months' data was not sufficient for the EU to make a reasonable assessment.
The US announced that it has accepted petitions from its textile industry seeking investigations into imports of seven categories of Chinese textiles and apparel, including shirts, sweaters, dressing gowns and brassieres.
This is in addition to probes the US government launched in early April to determine whether to restrict imports of pants, shirts and underwear from China.
Under the complex rules governing China's WTO accession, the EU and US can restrict growth of textile imports from China to just 7.5 percent above that of the previous year if they cannot settle their disputes through talks.
China can challenge restrictions through the WTO's disputes settlement body if it feels that it has been treated unfairly.
(CRI.com April 29, 2005)
