China's commerce minister said today he was confident of solving a textile trade row with the European Union.
The dispute has led to the pile-up of 75 million Chinese bras, sweaters, T-shirts and other goods at customs because they exceed ceilings agreed by the EU and China in June after a surge in Chinese exports led EU textile producers to demand protection.
"Currently the Chinese and the European sides are earnestly discussing this issue. I believe, and I am confident, we will be able to find a solution," Commerce Minister Bo Xilai told Chinese state television reporters.
Mr Bo's EU counterpart, Peter Mandelson, expressed similar sentiments in Brussels today, even though EU officials said some countries were still demanding concessions from Beijing.
"I hope that China sees the value in reaching an accommodation over these teething problems," Mr Mandelson said, adding that he hoped the goods could be unblocked by the middle of the month.
He said an agreement could come as soon today, but he did not rule out the possibility of a deal not being reached.
Mr Bo said market disruption had been inevitable following the abolition on January 1st of a 40-year-old system of quotas on developing countries' textile exports.
China, which enjoys immense economies of scale thanks to its modern factories and cheap labour, has seen a surge in exports not only to the EU but also to the United States.
It has complained that Western producers had known for a decade that the market would be liberalised in 2005 and had failed to get ready. Washington, like Brussels, has slapped emergency curbs on an array of Chinese garment and textile exports.