The fourth round of Sino-US textile negotiations ended without result, but Sino-EU negotiation reached agreement on resolving the problem of halted Chinese textiles at EU ports. The outcome of the two different negotiations aroused more concerns about China's current trade frictions
Experts predict that a pattern of 'You are part in my interest and I am part in your interest' sets to increase the probability of the fifth round consultation to reach an agreement.
They also point out that the 'over-sensitive' attitude on US side has stemmed from its growing trade deficit. To try to avoid a trade war, China should also make efforts to readjust the economic growth mode and speed up the upgrading of export products.
From the current Sino-EU textile negotiations and mutual compromises one can see that Chinese manufacturers, exporters and EU importers, retailers and consumers shared basic common interests. If the EU trade protectionists had achieved some 'fruit', it would have meant that the interests of the EU importers, retailers, and consumers were eroded.
In fact, Sino-US textile trade friction between the bilateral interests indicates a similar pattern.
China currently has 19 million textile workers, if the Sino-US negotiations fail again this time, around 10 million textile workers to lose their jobs within one year.
But it does not mean the US would necessarily benefit from it, as Chinese textile companies import large quantity of cotton, textile fabrics and sophisticated equipments annually from the US.
Last year, China bought from the US cotton worth $1.6 billion becoming the biggest buyer.
A considerable portion of US cotton was re-exported to the US after being made into textiles. If the negotiation lasts long without result, exports of US cotton, fabrics and textile machinery equipments to China are vulnerable to be affected. In addition, the interests of ordinary American consumers and US textile importers and retailers will be damaged.
According to sources, the fifth round of Sino-US textile consultation will be held soon and will hopefully obtain positive result. Insiders from both sides agree that the problem can be solved only through dialogues and negotiations to seek a win-win situation, while revenge and punishment often result in a 'lose-lose' situation.
