China : Retaliation Plan Against U.S.:Export Quota Likely to be Imposed

The textile chiefs of China is planning to impose export quotas on certain apparel and textile goods on their US counterparts and requested their government to carry out similar action.

The Chinese Textile Industry Association said if US agrees to a request by the American Textile Manufacturers Institute to impose quotas on knitted fabrics, brassieres, gloves and nightwear, China should retaliate.

The US trade group made its plea for action late last year saying under World Trade Organisation rules countries can restrict imports of certain goods deemed to harm the market.

China's state news agency quoted an unnamed association official as saying: "We hope the US Government will reconsider whether to start a formal process based on the groundless petition of the ATMI.

"The United States should be more cautious in starting this procedure, which will benefit no side," he added referring to the fact many Chinese firms are funded by US entrepreneurs.