Concern over US-China textile row

THE US is playing with fire by imposing trade tariffs on Chinese clothing imports Ulster Bank financial markets economist Niall Dunne warned yesterday as China retaliated.

"We've long warned that the US administration, coming into an election year, could take economically unsound steps in an attempt to win the November 2004 presidential election. However, we did not expect them to take such steps a year ahead of the election.

"America has dangerously escalated its protectionism, by imposing tariffs on Chinese textile imports. America really is playing with fire, since the Chinese are one of America's principal creditors without Chinese inflows into the US bond market, the American current account deficit would in all likelihood balloon," warned Mr Dunne.