Associated Press

Hong Kong, June 13:

Chinese vice-premier Wu Yi praised the European Union (EU) today for settling a trade dispute

over China’s surging textile exports, and criticized the US for slapping a restriction on textiles before talks could resolve the disagreement. Wu said in a keynote speech to the biggest Asia-Pacific business organisation that it was natural for countries to have some friction as global trade brings economies closer together. “The key is how to handle this friction,” she told the Pacific Basin Economic Council. Wu complained about US decision to impose a 7.5 per cent cap on the increase in Chinese textiles this year. “This severely harmed Chinese textile enterprises that were enjoying the benefits of globalization,” she said, “We strongly urge nations to respect WTO regulations and to use fair negotiations and cooperative efforts to properly manage the textile issue.” America started restricting Chinese textiles after international textile quotas were scrapped on January 1. The US and the EU have complained that cheap Chinese textiles have been flooding their markets and that measures are needed to better manage the swelling imports.