China took a tough line today in trade talks with US officials on its surging textile exports, signalling no quick breakthrough in a row that threatens to spill over into the diplomatic arena.
Vice Premier Wu Yi, who oversees trade, said emergency import curbs the Bush administration had slapped on trousers, shirts, underwear and cotton yarn from China were hurting an industry that employs 19 million people.
"The restrictions implemented by the US have severely impacted China's textile production," the official Xinhua news agency quoted Wu as saying.
"If this cannot be handled well it will severely affect the course of bilateral economic relations and trade," she said.
US Commerce Secretary Carlos Gutierrez said he held a "good meeting" with his Chinese counterpart Bo Xilai, but added that China had to understand the heat he was feeling at home.
"I don't believe there is a full appreciation in China for the level of political pressure that we face with respect to our relationship," he told reporters. Gutierrez, near the end of a three-day visit, was later joined by US Trade Representative Rob Portman for his meeting with Wu, who hinted the onus was on Washington to resolve the problem.
"The US side should fully understand the seriousness of this issue and help promote a proper resolution," she said. US imports of clothing from China have surged since a global quota regime ended on January 1st, prompting Washington to impose the emergency curbs. China says the move, along with similar actions by the European Union, is unjustified and violates World Trade Organisation rules.
Despite Wu's tough remarks, Bo indicated Beijing was keen to resolve the issue without a trade war. "Sino-US trade witnessed such great progress in the last 26 or 27 years and we two countries should have the capability to properly deal with the textile trade issue and other questions," Xinhua quoted Bo as saying after the 45-minute meeting.
"China has become the third-largest trade partner of the United States and it's natural for some problems to emerge ... We exchanged our points on the textile issue frankly," he said.