China expressed willingness on Wednesday to restrict its textile exports to South Africa, but no firm deal was on the table at the conclusion of talks between Chinese premier Wen Jiabao and President Thabo Mbeki.
The two leaders agreed that concerns over the alleged flooding of the local clothing and textile market would not derail otherwise strong ties, Wen told reporters in Cape Town.
They had reached ”full understanding and accommodation” on the issue, he said.
”We both agree that the issues in the textile trade will in no way compromise the overall economic relations and trade between the two countries.”
China would not seek to take over the market share of other countries by simply enlarging the scale of its textile production, Wen said through an interpreter.
The country would continue to honour World Trade Organisation (WTO) rules, while doing its best to help affected countries enhance their own capacity in textile production.
”We are willing to take self-restrictive steps and measures to restrict China’s export of textiles to South Africa in order to ensure the stability of the textile market in this country,” said Wen.
He added that Mbeki had made ”very positive responses” and told him the ”issue is over”.
The two countries had reportedly been expected to announce an agreement on the curbing of Chinese textile imports to South Africa, where thousands of jobs have been lost in the textile industry in recent years.
Trade unions have blamed China for causing job losses by flooding the local market with cheap products.
The Democratic Alliance has also urged the South African government to seek binding assurances from Wen to restrain his country’s clothing and textile imports from South Africa.
”Responses by Department of Trade and Industry negotiators that China would effect a voluntary restraint on clothing exports are not enough,” said DA trade and industry spokesperson Pierre Rabie.
The South African government, he said, should assert its willingness to invoke WTO safeguards against dumping, and explore the possibility of setting a minimum value on clothing imported from China. – Sapa