Inefficient textile industry urges clampdown on cheap China imports before it has to throw in the towel

In the good old days when Japan's domestic industry was protected and foreign goods were shut out, even the most inefficient companies thrived.

But as pressure from the US and elsewhere grew, Japan was forced to open up its markets. Now a reaction has sprung up and companies under pressure are urging the Government to slam the gates shut once more.

Leading the charge are textile makers concerned about a flood of cheap towels from China. The market for domestically made towels has simply dried up. The Japan Towel Industry Association - there is one association for just about every industry in Japan - is tapping a network of politicians within the ruling Liberal Democratic Party (LDP) and has formally asked the Government to 'safeguard measures against increasing imports'. The industry has promised to reform itself so that it can restructure and compete.

At first this looks like the Japan of old, when industries routinely sought government protection in defiance of liberalisation pressures from abroad.

On the plus side for the industry, World Trade Organisation rules allow countries to implement emergency import curbs in cases where domestic industries are threatened.

On the minus side, Japan is a different nation to the days when firms could find a ready ear among LDP politicians. These days consumers wield far more power than companies.