China dissatisfied with textile decision

China lashed out at the European Union on Sunday after the 25-nation bloc took its dispute with Chinese textile imports to the World Trade Organization, forcing an immediate curb in shipments of T-shirts and flax yarn.

“The Chinese side thinks that the European side launched an investigation and made a decision … based only on three months of data,” Commerce Ministry spokesman Chong Quan said in a statement posted on the ministry’s Web site. “It’s an inaccurate assessment and an incorrect decision.”

European and U.S. textile makers say their livelihoods have been threatened by a surge in Chinese exports since a worldwide quota system ended on Jan. 1.

According to EU figures, imports of Chinese T-shirts rose by 187 percent in the first four months of 2005, compared to the same period last year, while imports of Chinese flax yarn rose by 56 percent.

The EU took the dispute to the WTO on Friday, giving China 15 days to react. It also means that the EU will restrict imports of flax yarn and T-shirts to no greater than 7.5 percent above the amount entering its market between March 2004 and February 2005.

Stocks

Markets still rise, but more slowly

Markets cooled off but continued to climb last week, pushing all the indexes to their highest levels in more than two months.

Compared with the previous week – when the Dow Jones industrial average scored its biggest advance of the year – the gains were modest. The Dow climbed 71 points, to 10,542.55. The Standard & Poor’s 500-stock index gained 10 points, to 1,198.78. The Nasdaq composite index advanced 29 points, to 2,075.73, its fourth weekly gain in a row.

Though the Nasdaq has been leading the recovery, it has the most to recover and is still off almost 5 percent for the year. The S&P is behind by just 1 percent, the Dow by 2 percent.

Clear as the recent trend may be, few market mavens are confident that it will continue. Oil prices, whose decline produced the previous week’s big gain, popped back up last week, dampening stocks. Economic data remain mixed, showing the economy is moving forward, but not with much vigor.

Events

The week ahead

¢ Today

Memorial Day. Markets, banks, most businesses closed.

¢ Tuesday

Economic indicator: May consumer confidence.

¢ Wednesday

US-India Business Council meets at U.S. Chamber of Commerce.

Economic indicators: May ISM manufacturing, April construction spending, May vehicle sales.

¢ Thursday

President Bush speaks on Social Security in Kentucky.

Economic indicators: April factory orders, first-quarter productivity.

¢ Friday

Economic indicators: May unemployment, payrolls, ISM service.