China summons US envoy on quotas

America says cheap Chinese textiles can be a threat

China has summoned the US ambassador to Beijing for a second time to protest about Washington's planned quotas on Chinese textile exports.

China has warned it may raise tariffs on certain US exports in retaliation.

Ambassador Clark Randt was called to a meeting with Vice Commerce Minister Ma Xiuhong on Thursday just a day after being summoned to the foreign ministry.

Ms Ma told the envoy that Beijing was "shocked" at the US move, Chinese state media revealed in reports on Friday.

The US announced on Tuesday that it would impose quotas on Chinese bras, knit fabrics and robes.

The growth of US imports will be limited to 7.5% annually.

Threat

Enforcement is still subject to negotiation between the Chinese and Americans before it can take effect.

China hopes the United States will change its mind immediately Ma Xiuhong Chinese Vice Commerce Minister

"The US decision will negatively impact China-US trade and harm the interests of the United States itself," Ms Ma was quoted as saying.

The decision "runs against WTO principles on free trade, transparency and non-discrimination", she added.

Ms Ma called on the US administration to "change its mind immediately".

On Thursday, the Chinese trade ministry said Beijing reserved the right to take "further actions".

The US Government says the textile cap is allowed under the terms of China's accession to the WTO, which give members the right to impose temporary quotas if Chinese imports are found to cause market disruption.