A local shopkeeper arranges silk products at a textile market in Shanghai. Photograph: Liu Jin/AFP/Getty Images
Trade tension between the EU and China is rising over a surge in Chinese textiles into Europe. Jacques Chirac, the French president, has said France cannot let imports of Chinese textiles
"invade" its markets without regulation.
France is putting pressure on the European commission for emergency action to curb Chinese textile imports, which have grown significantly since the abolition of global textile quotas at the beginning of the year.
When that regime ended on January 1, many textile importers from smaller countries such as Vietnam and Sri Lanka were fearful that they would lose market share to China, Asia's economic powerhouse.
But European countries are the first to squeal. EU trade ministers yesterday agreed to a full investigation into allegations that cheap Chinese textiles are flooding the EU market.
However, there is disagreement on the need for quick action as requested by France that would involve formal consultations with China. Under World Trade Organisation rules, these can take up to 90 days.
But if the EU thinks China is not helping to solve the issue and risks causing irreparable damage to European industry, it can impose emergency trade barriers within 15 days. France, Italy and Portugal want quick action, but Britain and Sweden advocate caution.
China of course sees it differently. A Chinese trade official told the Financial Times: "Europe has reaped so much by selling jets and locomotives to China. Why did they get so sensitive about a small rise in China's exports."
Under previous trade rules, quotas in textiles and clothing were negotiated bilaterally. There was much grumbling from developing countries that the old system, known as the multifibre trading agreement, was a protectionist setup. But the new system has brought its own problems.
