Source Pravda.Ru

China wants more talks with U.S.

China said it hopes to hold more talks with the United States over efforts to restrain surging imports of Chinese textiles, as President Hu Jintao prepared Friday to leave on an official trip to Washington.

A statement issued by the Ministry of Commerce late Thursday said both sides agreed to keep open channels for negotiations and to set a time and location for a next round of talks as early as possible.

Chinese textile exports have surged since a worldwide quota system expired on Jan. 1, and American producers complain that the flood of goods threatens to wipe out thousands of jobs.

The latest talks on American efforts to restrain growth in imports of low-cost Chinese underwear and other textiles failed to result in an agreement Thursday after three days of talks. Both sides showed "flexibility" but no resolution was possible due to some "issues of principle," the ministry said.

Pravda.ru reported, that just hours after the talks broke down, the United States announced it was re-imposing import quotas on two types of Chinese clothing and textiles.

Meanwhile, state media on Friday cited Chinese textile makers expressing disappointment over the talks' failure.

"One-third or even half of Chinese spandex businesses will be placed in a difficult situation for operations in the next half year," said Zhang Shuguang, a staffer in the marketing department of Yantai Spandex Co, a manufacturer based in eastern China's Shandong province, according to a report in the state-run newspaper Shanghai Daily.

The dispute is especially sensitive amid rising American frustration at the country's soaring trade deficit with China, which reached a record US$162 billion (euro133 billion) last year. Washington says the trade deficit this year is running 32 percent above that level.