The Study On The Textile Trade Dispute Between China And The U.S. In The Post-Quota Era

In 2005, soon after the quota era, the textile trade dispute between China and the U.S. was notable worldwide. Although a memorandum of understanding was finally signed by the two sides on this issue, the real causes of the dispute and the inevitability of an eventual agreement is still worthy of our reflection. This paper focuses on the real case, in conjunction with relevant WTO law, after analysis concluded: the U.S. government's textile limitations in both procedural and substantive, are incompatible with section 242 of the "China's accession to the World Trade Organization Working Group Report", a departure from the spirit of free trade advocated by the WTO, hidden behind its ulterior motives.From an economic point of view, on the one hand, due to restructuring as a result of non - textile manufacturers in a difficult situation in the post-quota era. By abusing " the special safeguard of 242",the U.S. government meant to provide the domestic textile industry breathing room ;On the other hand, in recent years, high on the U.S.-China trade deficit and the consequent dissatisfaction triggered by the desire to force a revaluation of RMB, led to the Bush administration's decision to threaten China with new textile quota .From a political standpoint, first of all, for seeking re-election, republican Bush, determined to win the presidential election in November 2004. In order to win the votes of textile industry, Bush must promise to "smother" Chinese textiles; In addition, mold has always wanted to "unipolar world" in the U.S. government view, the rapid rise of China in recent years has been a "threat" to the U.S.'s position in world affairs. Therefore, for Bush administration, to limit China's textile industry as a whole to contain China's economy is "positive" strategic significanceThen, the paper analyze the Chinese government's countermeasures in the dispute process, thus proving the necessity of the two countries reach a final agreement. This dispute also indicates that China's textile industry will face a bumpy road in the post-quota era, in the light of this, a number of proposals were given to national stakeholders at the end of the paper, and we hope that they will more calmly to the challenge.