The European Trade Commissioner Peter Mandelson said yesterday the European Union was glad to see China's voluntary measures to increase its export tariffs on textiles.

"The European Commission has to consider carefully to see whether the duties will operate quickly enough, strong enough and with enough certainties," he said.

China's textile exports grew rapidly this year but it was not China's fault, he said. Since the European countries had not been fully prepared, he hoped that the two sides would reach consensus under the World Trade Organization framework and handle the matter smoothly.

"It (dealing with these current trade frictions with China) takes me a lot of time everyday but it is justified," Mandelson said.
Safeguard measures on China's T-shirts and flax yarn will be launched by European Union in 10 days in case no progress is made through the formal consultation between the two sides.

Other quotas on Chinese socks, which went into effect last October, were filled last week, meaning no more Chinese socks can be legally imported to the United States.

"The one thing I can predict is that there will be more safeguards," said Labuda yesterday.

The US quotas have added to the market confusion created by the new taxes on exports to be imposed by the Chinese Government. Export tariffs on each of some kinds of products will be raised to about 1 yuan (12 US cents) - from a previous level of about 0.2 yuan - at the end of the month.

For Chinese clothing suppliers, the quotas are likely to hurt because "we cannot export some products," said Barry Zheng of Ningbo Veken Elite Zhedong Knitting. "Clients here want to give us orders but they are worried that they may not get that order."

And local companies have called on the government to be stronger in consultations and find more effective ways to achieve the healthy growth of China's textiles exports.

"I do expect the Chinese Government can act stronger when it begins the textile consultation with the United States since we have much bargaining room," said Wei Bensen, a manager from the foreign trade department of Shandong-based Yeliya Garment Group.

Textile associations and academics have requested that the government retaliate against the United States through trade action or take the US side to the WTO.

Wei also expected the government to find a better way to motivate exports. He said the increased export tariffs would greatly impede China's textile exports to other markets such as Japan and South Korea, and do little help to calm export growth to the United States and Europe.

"An export licence system is a better way to control export speed," he said.

Meanwhile, the EU's textile committee's decision to back consultations may also precede temporary import quotas on Chinese exports. The final decision will be made by the EU today.