The Europe Union (EU) will lift the quotas of ten categories of textile imported from China starting Jan. 1, 2008, said the Ministry of Commerce Sunday.

According to the memorandum signed by the two parties, the EU will lift quotas on China's textile exports to the EU at the end of 2007, vice commerce minister Gao Hucheng told Xinhua.

Following a so-called "textile war", the EU and China reached an agreement in June 2005 on resuming quotas on China's textile exports to the EU, which expires at the end of 2007.

On Sept. 28, 2007, the two parties agreed to set up a bilateral monitoring system to monitor Chinese exports of T-shirts, pullovers, men's trousers, blouses, dresses, bras, bed linen and flax yarn after the lift of the quotas.

Meanwhile, China and EU will implement export license administration and automatic import license respectively, without quantity restrictions.

Gao urged Chinese textile producers to nurture more home brands, optimize their product structure and narrow up the gap with international competitors through international exchanges and cooperation.

(Xinhua News Agency October 21, 2007)