Manoeuvres in textile negotiations

The sur­prise with­draw­al of all Chi­nese export tar­iffs on tex­tiles, just a day or so after dra­mat­ic increas­es were announced, sug­gests that the Chi­nese are now nego­ti­at­ing with them­selves I “thought”:http://www.inquit.com/article/429/us-and-eu-quotas-to-force-up-world-clothing-price the Chi­nese move was clever, and no more cyn­i­cal than the pol­i­cy of the U.S. and E.U. on gar­ment imports. But … bq. “The gov­ern­ment revoked the bulk of tar­iffs imposed on Jan. 1 and increas­es to those tax­es announced on May 20, the Min­istry of Finance said in a state­ment today. The min­istry didn’t say why it removed the tar­iffs, which were imposed to con­trol the indus­try after an end to glob­al tex­tiles quo­tas on Jan. 1. “This is a strong ges­ture from Chi­na to the U.S. and EU,” said Long Guo­qiang, a senior trade researcher at the State Coun­cil Devel­op­ment and Research Cen­ter in Beijing.”(“Bloomberg.com(link to this excerpt)”:http://www.bloomberg.com/apps/news?pid=10000103&sid=aelKOpgNgUEQ&refer=us) But this looks like the sort of inde­ci­sion brought about by inter­nal con­fu­sion about whose hand holds which levers … and jerky knees.  There’s “apparently”:http://www.forbes.com/business/feeds/afx/2005/06/01/afx2068023.html been some sort of con­fir­ma­tion of this in a Chi­na Dai­ly edi­to­r­i­al that acknowl­edges that ‘uni­lat­er­al action’ (China’s?) is ‘not con­struc­tive’. There’s every rea­son to think we’ve seen only the open­ing moves in this game.

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