China has promised to take more effective measures to limit its textile exports, a move that demonstrates China's positive attitude toward resolving its trade row with the European Union.

Chinese Premier Wen Jiabao told the troika of EU foreign ministers on Wednesday that China understands the concerns of the EU on the textile issue. He pledged China will take further economic measures to prevent the excessive growth of China's textile and garment exports.

Although he did not specify the measures, analysts said it demonstrated a positive attitude of China towards resolving the textile trade disputes.

The trade row between China and the EU has caused great concern among China's top leaders after the EU launched an investigation into Chinese textile imports in nine categories of clothing that could lead to an imposition of curbs.

The investigation was initiated after preliminary figures showed China's clothing exports to the EU surged in the first two months of the year.

It will be "reasonable but illegal" if the EU takes restrictive measures on China's textile exports, said Feng Zhongping, director of the European section of the Chinese Institute of Contemporary International Relations, adding the restriction would run against the free trade rules of the World Trade Organization.

Chinese President Hu Jintao told his French counterpart Jacques Chirac during a meeting in Moscow this week that China paid great attention to the textile issue and hopes the issue can be resolvedthrough consultations on an equal footing.

Chinese Premier Wen Jiabao called upon joint efforts with the EU to settle the textile disputes, emphasizing the importance of "long-term" and "strategic" partnership.

"China's self-control measures on textile exports have been and will continue to be effective," Wen said, stressing: "The settlement of the current textile trade friction needs joint efforts from both sides."

Chinese Trade Minister Bo Xilai called on the EU last week not to exaggerate the textile issue. During his meeting with EU Trade Commissioner Peter Mandelson in Paris, Bo said that limitations on Chinese textile products would not only harm China's interests but also damage the interests of EU importers, retailers and consumers.

The EU has increased pressures on China's textile exports but that does not equal a confrontation, said Feng. "Probing actually gives the two sides time for readjustment and consultations," he said.

The worldwide textile quota regime ended at the beginning of 2005 as a result of the previous round of world free trade negotiations.

China has agreed when joining the World Trade Organization to let WTO members impose limits on its textile products if a sudden rise in shipments threatens to disrupt their markets. But it has sought to avoid such circumstances through consultations.

Zhu Liqun, director of the Institute of International Relations of Foreign Affairs University, said the EU should have strengthened its own mechanism to deal with the possible export surge after the quota regime ended.

Some European nations, like Finland, Switzerland and Germany, are opposed to the imposition of a curb as they have succeeded in dealing with the textile export surge, said Feng.

China has stressed the principles of world free trade, saying imposed limits would hurt the world free trade regime.

"The abolition of the textile quota regime for an integration of world trade is absolutely necessary for just and free world trade, and all countries should make efforts for that," Wen said.

Chinese producers complained about the probe, saying buyers have hesitated to take the order as they did not know what "restricted measures" would be taken by EU nations.

"It's unfair to impose limits on Chinese textile exports just based on the data of this year's first quarter as many exports in the first quarter were ordered before the end of last year," said Yang Weidong, general manager of the Jifa Group Co., Ltd., the second largest textiles exporter of east China's Shandong Province.

In fact, China has already adopted a series of measures by its own to stem large quantities of textiles products from flooding into the EU members and the United States since December last year These include adding tax on 148 types of textile goods and limiting investment in the textile sector.

Feng described the measures as "pragmatic" and "cautious", saying that they are in conformity with the interests of both sides.

Sino-EU economic and trade cooperation has greatly expanded over the past three decades. Last year, bilateral trade volume reached 177.3 billion US dollars, 74 times that of 30 years ago. The EU has surpassed the United States to become China's largest trade partner.

The removal of the textile quotas is the great contribution of the World Trade Organization to developing countries, and the settlement of the textile trade disputes not only concerns China and the EU, but also all developing and developed nations, said Feng Zhongping.

"The two sides should cautiously handle the issue to promote just and free trade in the world," said Feng.

(Xinhua News Agency May 14, 2005)