U.S. Revives Quota on Chinese Textile Imports

In response to demands by its domestic textile producers, the U.S. government decided to revive the quota system on three textile items imported from China.

Through a statement on May 13, Secretary of Commerce Carlos Gutierrez said that he made the decision from the judgment that surging Chinese textiles are disrupting the local market since the abrogation of the textile quota system across the globe on January 1.

Accordingly, the growth of Chinese exports to the U.S. in categories including cotton trousers, cotton knit shirts, and underwears will be limited to 7.5 percent of what it had shipped for over the past 12 months.

China condemned the safeguard measure, saying that it poses a serious threat to the multilateral trade system, and warned that it could take reprisals.

Commerce Ministry Spokesman Kong Quan criticized the plan on May 14, saying, "The U.S. imposed regulatory measures on Chinese textiles on the basis of short-term and incomplete statistics. China has the right to take additional measures under the WTO system."