Chinese manufacturers say quotas have hit them hard

Although some progress was reached at this week's talks in Washington, their differences were not settled, the Chinese trade ministry said.

The US enforced quotas on seven kinds of Chinese textile imports after a global quota system expired in January.

China says the quotas run contrary to World Trade Organization (WTO) rules.

The US textile lobby claims that the massive influx of textile exports from China may harm domestic producers, ending in mass redundancies.

Imports of shirts, pants, bras, underwear and other clothing to the US rose dramatically after a global quota system ended on 1 January this year.

The US moved swiftly to impose quotas on the goods - a move which the Chinese claim has plunged about 10,000 companies in China into losses.

Safeguards

At the moment, clothing and textile imports from China to the US are allowed to grow at no more than 7.5% a year, under a "safeguard" provision of Beijing's entry into the WTO.

We will be meeting with the Chinese again next month David Spooner, textile negotiator

But now US textile groups want a deal restricting 30 or more categories of imports from China through to 2008 when the provision ends.

Officials say that the two sides are close to agreeing on the number of products the safeguard will cover.

However, they still disagree on the length of the agreement.

US textile groups now expect at least one more round of talks to secure a mutual deal.

"We were able to make progress, particularly with product coverage and quota levels," said US negotiator David Spooner.

"We will be meeting with the Chinese again next month," he added.