US-China begin key textile talks

Experts believe the two sides are keen to resolve the dispute

US trade officials have begun vital talks with their counterparts in Beijing in an effort to cap the growing level of China's clothing exports.

The negotiations are the latest attempt by the two countries to reach an agreement on how to control Chinese sales to the US.

Imports have surged since the start of the year when quotas governing worldwide textile sales were abolished.

China is currently seeking to resolve a separate textile dispute with Europe.

Beijing does not want a repeat of its trade wrangle with the European Union, which is proving increasingly embarrassing.

The dispute has left millions of goods, including trousers and bras, stranded at European ports after China breached annual quota levels introduced in June.

Jobs fear

The US government, like many European counterparts, is worried about the impact of cheap Chinese imports on its own textile industry.

US clothing manufacturers have warned Washington that thousands of jobs could be lost if restrictions are not placed on certain Chinese imports.

China hopes that the two parties will adopt a positive attitude Chinese commerce ministry

The Bush administration has already imposed quotas on imports of knitted shirts, cotton trousers and underwear. It is considering similar restrictions on wool trousers, dressing gowns, bras and sweaters.

Experts believe the two sides are keen to reach an agreement before the China's President Hu Jintao begins a trip to the US next week.

The discussions are being led by David Spooner, President Bush's chief textile negotiator and Gao Hucheng, China's vice commerce minister.

"China hopes that the two parties will adopt a positive attitude while seeking a solution that will create a stable environment for China-US textile trade," the Chinese commerce ministry said in a statement.

Fundamental differences

Previous attempts to create a framework for Chinese imports have failed due to fundamental differences of opinion on how to regulate sales.

US manufacturers want the government to limit annual growth in imports of 19 categories of clothing to 7.5% until 2008.

It is thought that China is looking for a higher ceiling on imports of certain items and the application of firm rules to govern textile trade.

The US commerce department said earlier this month that it would examine whether a wide-ranging textile agreement was possible before taking further steps to limit imports of individual goods.

Sales of Chinese-made clothes to the US are set to rise 60% this year from last year's $15bn figure.