BEIJING - China will not impose additional curbs on its textile exports, rebuffing demands by the United States and European Union to do more, Commerce Minister Bo Xilai said in comments posted Thursday.
"The integration of the textile trade is a right we have gained since China joined the WTO and China will not impose curbs on its textile products," Bo told a delegation of US businessmen, according to the ministry's website.
An official at the ministry told AFP Bo was ruling out restraints on export volumes and China could announce other economic measures but refused to say what or when.
China has already raised taxes and lowered export rebates on textile products in a bid to slow growth.
Just hours after Bo met with the US delegation Wednesday, Washington slapped quotas on another four categories of Chinese textile goods in addition to the three it had already announced.
China has yet to officially respond to the latest US moves but in the meeting with US Chamber of Commerce President Thomas Donohue, Bo said such safeguard measures were "unwise".
The China Textile Industry Association meanwhile condemned America's "disgusting behaviour".
"It will seriously aggravate the textile trade dispute with China and further violates the principles of free trade. We express anger and strongly protest," the group said on its website.
The developments will likely fuel trade tensions focused on China's currency regime, which the United States claims has created an artificial boom in Chinese exports at the cost of thousands of US jobs.
China's foreign ministry called for the United States to engage in "equal consultations".
"No side should take unilateral action," spokesman Kong Quan said. "We hope the United States can properly solve the relevant issues through equal consultations and in a constructive spirit."
China's decision could also spark retaliatory action from the EU, which has put restrictions on imports of flax yarn and T-shirts from China and has warned of further measures if Beijing does not show a "constructive attitude".
At a business forum Wednesday, Bo blasted developed countries for arguing for global standards on free trade when they enjoyed absolute advantages but then placing restrictions when their own interests were threatened.
Under World Trade Organisation (WTO) rules, such "double standards are not allowed," he said.
He said some developed nations have failed to abide by WTO stipulations that requested them to gradually ease the quota system for the import of textile and garment products in the 10 years starting from 1995.
"This was why China's exports have soared in the first quarter of the year," he said, referring to the end of the global quota system on January 1.
Analysts said China had a strong case.
"Bo Xilai uses strong words but I think he has a very sensible and valid point," said Qu Hongbin, an analyst with HSBC in Hong Kong.
"You cannot on the one hand talk about entering the China market, ask China to join the WTO and open up its markets, and on the other hand, when you see that China is starting to become a supplier, or a producer, then try to limit that.
"This is just ridiculous."
China Textile Industry Association vice president Gao Yong said the country had done all it could to curb its growing exports.
"China has done all that it can to curb the fast growing exports and abide by its WTO commitments," Gao was cited as saying by Xinhua.
"The developed nations must live up to their own commitments too."
Gao said his organization was working to help domestic textile companies improve their product mix, diversify export products and further explore the international market to sharpen their competitive edge.
05/19/2005 11:20 GMT