"China and the US should reach an agreement on textile trade in the near future," Minister Bo said when China and the EU signed a mutually-beneficial deal on September 5.

To further regulate China's textile exports, the ministry will adopt a bidding system for allocating part of next year's textile quotas.

The ministry circulated the rule for bidding textile export quotas on Friday.

"The move would ensure fair play among Chinese exporters, help better manage their performance, and optimize the use of export quotas," said Cao Xinyu.

It will also drive Chinese textile exporters to develop high value-added products and propel industry upgrade, he said.

China's current allocation of textile quotas, particularly from the EU, was based on textile dealers' shipments in the previous year.

Using this method, a number of textile companies shipping just several items or kilograms were not able to export at all.

On Friday, Munir Ahmad, executive director of International Textiles and Clothing Bureau, said in Beijing that China is used as an alibi in the textile trade friction.

"The convenience of using China as an alibi has given the possibility of applying restrictions on China's export under the provision of its World Trade Organization accession Protocol," Munir Ahmad said at the "WTO and China: Beijing International Forum," Xinhua reported.

(China Daily 09/17/2005 page2)