China has said it will introduce a new quota system to check its booming exports of textiles following a deal with the European Union 10 days ago that eased trade friction.
China cancelled export quotas at the start of January as part of a global move to end textile quotas.
But surges in textile and clothing exports upset the European Union and the United States who sought to impose safeguards.
Under the new regulations, which go into effect on July 20th, export licences issued by the Commerce Ministry will be determined based on a company's exports in the previous 12 months, the Commerce Ministry's website said.
China agreed this month to limit annual growth in exports of various categories of textiles to the European Union to between 8 and 12.5 per cent. The quota system may be a move to appease the United States, with which China is due to hold talks on textiles.
A US embassy spokeswoman declined to say when talks would start. The European Union has now moved on to investigating China's sales of cheap shoes.