China's top woman in bra wars talks

CHINA is sending its most powerful woman to America this week to negotiate a solution to the so-called 'bra wars', which threaten to escalate into a global trade dispute.

Vice-premier Wu Yi, 65, described as 'formidable' and 'no-nonsense', is expected to take a tough line with Washington officials over US quotas imposed on Chinese-made bras, dressing gowns and knitted gowns.

Wu Yi, trained as a petroleum engineer, is no stranger to international crises. The highest-ranking woman in the Chinese leadership, she was placed in charge of handling the Sars health crisis in early 2002.

China watchers have noted that she has been pushed to the forefront in foreign trade of late, leading delegations to Asia and other parts of the world.

The talks take on added urgency because the Bush administration has to decide by the end of this month whether it will support an investigation under US trade law of a petition against China brought by American trade unions. The petition calls for tariffs of as much as 77% on a range of Chinese-manufactured goods on the grounds that it treats its workers unfairly and artificially holds down Chinese wages which, in turn, costs American jobs.

This week's talks will also cover electronic semiconductors, wooden furniture, American beef and poultry, brand piracy and the level of the Chinese currency, the yuan, which Washington says is partly to blame for a ballooning $124bn (£72bn) trade deficit with the Asian superpower.

The announcement that Wu Yi will head the Chinese delegation has prompted President Bush to assign more senior officials to the latest round of negotiations.

'This meeting is crucial,' said Frank Vargo of the National Association of Manufacturers. 'This is where you draw the line. This is where we see whether China is going to live up to its World Trade Organisation obligations or not.'