Related Event: Textile Quota Elimination

China and the US are scheduled to hold a new round of talks today as textile frictions between the two sides continue to flare as hot as Beijing's weather.

"This round, which still concentrates on the technical level, is expected to pave the way for further talks in the Sino-US Joint Commission for Commerce and Trade to be held next Monday in Beijing," a China's Ministry of Commerce official said.

The last round of Sino-US talks, in the wake of a deal China made with the European Union, was held on June 17.

Some insiders are wondering whether discussions between the two governments will be able to rescue two sides from their current imbroglio.

The China Chamber of Commerce for the Import and Export of Textiles warned Chinese textile exporters to stop exporting cotton trousers, shirts, and underwear to the US market because border officials may shut down traffic within a few days.

According to figures from US Customs, Chinese exporters have used up 96 to 98 per cent of their entire year's quotas in the three categories through July 5.

Statistics from the China General Administration of Customs shows that the clearance rate of these categories had all exceeded 100 per cent by July 4. Figures for man-made fibre shirts also had surpassed 100 per cent.

"Those companies whose products will be kept out the United States will have to bear large losses," said Liang Shiyu, an official with the chamber.

She explained they will have to pay more for shipment and stock no matter whether they are going to export the products to other countries or transport them back to China.

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