Increased curbs on Chinese exports of textiles and clothing, following the removal of global trade-restricting quotas this year, were yesterday demanded by Mr Peter Mandelson, the European Union trade commissioner.
"China must trade freely and fairly. If there is a perception that China is reaping the benefits of free trade without meeting the standards of fair trade, there will be a negative response in Europe and elsewhere," Mr Mandelson said before his arrival today on his first official visit to China since taking office.
He said the growth of Chinese textile exports was a particular worry. "I want to discuss with the Chinese government curbs that they could make to moderate export growth. In December they announced measures [to limit that growth]. It is too early to say definitely what those policies have achieved, but the signs so far are that they are too modest."
Mr Mandelson also raised the possibility of using the "special safeguard mechanism" to put a brake on Chinese textile imports into Europe, which have risen sharply as quotas have been phased out over recent years.
Negotiated during China's accession process to the World Trade Organisation (WTO), this mechanism allows countries unilaterally to restrict textile imports from China. It has never been used by the EU and any move to apply the mechanism would be viewed with hostility by Beijing. "It is quite possible that Europe will use special safeguards - it is quite possible, but not certain," Mr Mandelson said.
Coupled with forceful language on China's lack of protection for intellectual property rights and the need for a bigger Chinese contribution to WTO trade talks, Mr Mandelson's remarks suggest he intends to take a tough line in Beijing.
Brussels has in the past been careful to distance itself from the more aggressive stance adopted by some US lawmakers and trade officials.
But in a sign that the Commission is moving towards a more confrontational position, Mr Mandelson insisted China would not be granted any reprieve in opening up its markets and abiding by international trade rules.
