China's textile plants are well-equipped

In a statement, US negotiator David Spooner said the two could not reach an agreement "that meets the needs of our domestic manufacturers and retailers".

A surge in Chinese textile exports since the start of this year, when a global tariff deal lapsed, has sparked discontent in both the US and Europe.

The European Union has already agreed temporary limits on import growth.

After teething troubles, which saw the 2005 quotas filled up within weeks, the 25-nation bloc will cap expansion at 8%-12.5% a year till 2007.

The US would like a similar deal, not least to silence calls from both unions and legislators for tough action on China - perhaps including sanctions.

It has already used "safeguard" provisions built into China's 2001 accession into the World Trade Organization to cap some clothing imports, including bras and underwear - although China says the US is mis-applying the rules.

Currency pleas

US manufacturers are loudly protesting at what they see as unfair competition from a country which combines low wages with hi-tech equipment.

Some couple their complaints to worries about the Chinese currency, the yuan, saying it is being kept at an artificially low level to make Chinese exports cheaper.

US Treasury Secretary John Snow is in Beijing urging China to move more quickly to floating the yuan, in the wake of a 2.1% upwards revaluation earlier this year.

But China is resisting the calls, saying it will move only at its own pace.