Special Report: Premier Wen visits 7 African countries
BEIJING, June 23 (Xinhua) -- China's voluntary
agreement to restrict textile exports to South Africa makes it the first nation
to offer such a commitment to promote economic development on the continent, a
Chinese researcher has claimed.
Chinese Premier Wen Jiabao made the promise to
restrict exports of China's textile products to South Africa on Wednesday in
Cape Town.
"This move marks a substantial effort of the Chinese
government in materializing its pledge to consider the economic development need
of African trade partners," said Liu Naiya, associate research fellow with the
Western Asia and Africa Studies Institute of the Chinese Academy of Social
Sciences.
Liu claimed that no other countries had ever
initiated a similar deal benefiting only its trade partners.
China's Ministry of Commerce is yet to disclose the
details of the "self-restrictive measures" promised by Wen, but experts said the
government might issue export licenses and set a maximum annual growth rate of
its textiles exports to South Africa as it did last year with the European Union
and the United States.
The government could also take effective measures to
encourage companies to support the growth of their South African peers through
technology transfer and capital input, they said.
Liu said the Chinese and South African governments
had showed "tacit mutual understanding" in handling their textile trade
disputes.
Earlier this year, the South African government
mapped out a package of policies to encourage domestic textile companies to
upgrade production lines and move to high-end clothing and textile products so
as to remain competitive against Chinese rivals.
"China obviously hates to see relations with South
African deteriorate and is eager to make a gesture by putting itself in South
Africa's position," Liu said.
Given that trade disputes between China and
developing nations were on the rise, he said the deal had set "a valuable
example" on dispute settlement.
However, the response from China's business community
was less positive. Chen Lingling, of the Beijing chief representative department
of China's largest textile group China World best, said the domestic industry
would definitely be affected by such policies.
"Complaining is no use. We have to wait and see and
find a way to deal with it," She said.
No relevant guilds were available to comment on the
issue at the time of publication.
Trade investigations against China from developing
nations like India, Turkey and South Africa accounted for almost two thirds of
the 32 investigations launched by 18 countries and regions this year until May.
Yao Guimei, an expert of African studies at the
Chinese Academy of Social Sciences, attributed the rising number of disputes to
surging bilateral trade.
"Never before has China encountered so many trade
disputes with its trade partners across the world," she said.
The Chinese government was seeking to reduce trade
disputes with African countries and maintain healthy Sino-African trade
relations by showing the will to lift last year's 1.18 billion U.S. dollar
direct investment in Africa, which was dwarfed by its 39.74 billion U.S. dollar
Sino-African trade volume.
For instance, Premier Wen's entourage to the seven
African countries comprises business representatives from small and medium-sized
private companies.
"This is an important sign that the Chinese
government has begun to support the overseas investment of non-state-owned
companies," Yao said.
To date, almost all investment projects in Africa
have been won by state-owned companies that enjoy capital and policy privileges
over small and medium-sized private firms, whose investment demand had long been
suppressed, Yao said.
The government was considering a package of policies
for release in November to level the ground for private and state-owned firms in
competing for overseas investment projects in Africa, Liu Naiya said.
It was also trying to boost non-cargo trade, such as
tourism, with its African partners.
To date, China has granted 16 African nations,
including Egypt, South Africa, Morocco and Kenya, tourism destination status for
Chinese nationals. Enditem