Mandelson due in China for textile export talks

European Trade Commissioner Peter Mandelson will hold talks in China tomorrow about the country's surging textile exports to …

European Trade Commissioner Peter Mandelson will hold talks in China tomorrow about the country's surging textile exports to the European Union.

Mr Mandelson will meet Commerce Minister Bo Xilai in Shanghai tomorrow afternoon.

China has until Saturday to agree to curb annual growth in shipments of T-shirts and flax yarn to the 25-member EU to 7.5 per cent or face temporary quotas on these products within days.

EU diplomats said Mr Mandelson's visit was a last-ditch attempt to reach a negotiated solution with China before the imposition of temporary quotas.

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They said he would be looking for a deal that allays the concerns of European industry, accepts that Chinese textile and clothing exports should be able to increase, and provides market predictability.

They said an EU investigation into seven other categories of Chinese textile and clothing exports was almost complete but that a decision on quotas for these would not be taken until after the Shanghai talks.

Mr Bo said China would defend China's textile industry, which employs 19 million people and accounted for about 16 per cent of the country's exports last year, in talks with the EU and United States.

He has previously said that Beijing may ask the World Trade Organization to adjudicate if it cannot reach agreement with Brussels and Washington.