2 - The Michigan Daily - Friday, January 7, 1994




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U.S. slashes
trade quota
for Chinese
textiles
WASHINGTON (AP) - The
Clinton administration slashed the
quota for textile imports from China
by more than $1 billion yesterday in
retaliation for what it called huge ille-
gal shipments of Chinese products
through other countries.
U.S. Trade Representative Mickey
Kantor announced the action after
China refused to resume negotiations
this week on the U.S. demand for
tougher controls and penalties aimed
at ending illicit shipments.
An estimated $2 billion a year in
Chinese textiles and clothing have
been shipped illegally through at least
25 other countries, including Hondu-
ras, Panama and Hong Kong, to the
United States, Kantor said.
Illegal Chinese imports could have
cost Americans more than 50,000jobs,
Henry Truslow, president of the
American Textile Manufacturers In-
stitute, estimated.
As recently as November, U.S.
Customs Service officers found Chi-
nese goods relabeled in other nations
to disguise their origin, Kantor said.
Chinese firms also have
overshipped - sent products directly
to the United States even though their
export quotas had been filled.
"The violations ... clearly cost U.S.
jobs. ... Obviously they are selling
products in a illegal manner, which is
then supplanting U.S. or other prod-

iAP PHOO
U.S. Trade Rep. Mickey Kantor discusses policy regarding Chinese exports yesterday.

ucts," Kantor told a news conference.
The U.S. retaliation comes amid
disputes between the U.S. and China
on human rights and arms sales.
Last spring, the administration
extended China's "most favored na-
tion" trade status until this June with
the warning it would have to improve
trade and human rights practices to
win further extensions.
Treasury Secretary Lloyd Bentsen
is scheduled to visit China later this
month to press for human rights and
economic reforms. He will be the
highest-ranking U.S. official to visit
China since the bloody 1989 crack-
down on democracy demonstrators.
China is by far the largest supplier
of textiles and apparel to the United
States, with shipments totaling $7.3
billion a year. Its products comprise
20 percent to 25 percent of the textiles
and apparel sold in the United States.

Its overall trade surplus with the
United States, about $25 billion last
year, was second only to Japan's.
Effective Jan. 17, quotas for
China's textile and clothing exports
to the United States will be reduced
by 25 percent to 35 percent on 88
categories of products, including
sweaters, knit shirts, cotton trousers
and shop cloths used to clean machin-
ery.
Kantor estimated this would re-
duce China's $7.3 billion in textile
and clothing sales to the United States
by $1.1 billion to $1.2 billion.
Sen. Max Baucus, D-Mont., chair
of the Senate trade subcommit-
tee, applauded the action, saying,
"China has received many warnings.
... Obviously they needed a tougher
approach."
The move also pleased U.S. tex-
tile manufacturers, but it could hurt

American retailers who rely in China
for cheap clothing.
"If retailers now sourcing goods
in China are made to look elsewhere,
then it is the American consumer who
will be forced to pay a higher price for
a number of apparel items," said Tracy*
Mullin, president of the National Re-
tail Federation.
But Truslow of the Textile Manu-
facturers Institute said China "has fla-
grantly and consistently violated our
laws.
"They have created a worldwide
network in Third World countries to
sneak goods into the United States..
displacing production that could have*
created more than 50,000 jobs in this
country," he said.
The Chinese embassy did not re-
spond immediately to several tele-
phone calls requesting comment.

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Department of Recreational
Sports
INTRAMURAL
SPORTS PROGRAM

General Motors to hire 2,000 engineers in 1994

1994 WINTER TERM
INTRAMURAL ACTIVITIES
Sign-Up Dates Begin: Wednesday 1/5
Ice Hockey Basketball Mini-Soccer
Volleyball Swimming & Diving Relays
Free Throw Shooting Team Racquetball
Table Tennis Pre-Season Volleyball
Racquetball(Sgls & Dbls) Broomball
3-Point CC Run Paddleball(Sgls & Dbls)
For Additional Information Contact IMSB 763-3562

DETROIT (AP) - General Mo-
tors Corp., in the final stages of a
downsizing that cut tens of thousands
of jobs, will hire up to 2,000 engi-
neers this year to meet growing de-
mand for new cars and trucks, Chief
Executive Officer Jack Smith said
Thursday.
"We're doing alot of things. We're
at the colleges, there are ads in the
newspapers ... we're out hiring," he
said.
Smith also indicated in an inter-
view that GM made a net profit on a
consolidated basis in 1993 - its first
since earning $4.2 billion in 1989.

GM will report its fourth-quarter and
annual results in early February.
Smith, who had vowed to wear his
watch on his right wrist until GM
returned to profitability, returned it to
his left wrist in late December.
"It's now on this side," he said,
extending his left arm. "And there's a
meaning to that."
The mood around GM is rapidly
improving as wrenching changes
forced by job cuts and factory clos-
ings are concluding and the company's
auto business is staging a comeback.
"I've been surprised at some ma-
terial I've seen recently about how

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outside people viewing our internal
operations ... have commented on the+
enthusiasm that's being shown on the
technical side," Smith said. "It's be-
ginning to work rather well."
Top North American executives
are not expected to receive bonuses
for the third straight year, though
white-collar employees recently were
given an annual stipend to help with
greater out-of-pocket charges for
health care that GM used to fully pay.
More importantly, workers at all
stages of GM are being given more
power to make decisions as layers of
bureaucracy have been stripped.
"I like to think we're giving the
folks more freedom to run," Smith
said. "There's certainly not a dictator
at the top."1
He acknowledges, however, that
his five-man President's Council may
have too many responsibilities.
"I would say we probably are thin
STORM
Continued from page 1
class and avoiding slipping on two
inches of muddy slush.
"It was incredibly slippery. This
girl in front of me fell on the ice and
I had to help her up. I couldn't believe
how slippery it actually was," said
LSA first-year student Jeremy Olsher.
Despite the fact that the storm is a
hindrance to transportation and the
winds are cold, the amusement of

II

at the top because we've asked every-
one to do two jobs," Smith said. "I
would think over time that maybe
we'll fill that in a bit. We've got the
people to do that."
As the health of GM's key North
American Operations continues to
improve, Smith said he expects to
name a president for the unit. He also
said he expects the huge Automotive
Components Group to be set up as its
own business.
Smith acknowledged GM's im-
age was tarnished by its financial woes
in recent years. It's still the world's
largest automaker, though not neces-
sarily the industry leader.
"I do think that we lost something
along the way," Smith said. "If I go
back in time, really it was the Japa-
nese who redefined ... building cars.
And maybe because we were so large,
we were the last to really change."
'i left the airport and it
was 80 degrees in
Hawaii and I came here
and I was like dying.' *
- Sheri Tokumaru
LSA first-year student
snowball fights and the beauty of snow
on the trees is a perrenial favorite of
many. Just watch your step.

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IN UTERO
FEATURING: HEART-SHAPED BOX-
ALL APOLOGIES - SCENTLESS APPRENTICE

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MASS
The Daily is hosting
a mass meeting for
everyone interested.
Wednesday
7:30 p.m.
Student Publications Bldg.
420 Maynard
TED X11 ,ilo

The Micnigan Daily (IS U/45-96) is publised Monday throug -riday during tie tall and winter terms by
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NEWS Melissa Peerless, Managing Editor
EDITORS: Hope Calati, Lauren Dermer. Karen Sabgir, Purvi Shah
STAFF: Adam Anger, Jonathan Berndt, Carrie Bissey, Janet Burkitt, James Cho, Lashawnda Crowe, Jen DiMascio, Demetrios Efstratiou,
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