BEIJING, Feb 24: European Union trade chief Peter Mandelson urged Beijing Thursday not to swamp world markets with cheap textile exports following the January 1 end of an international tariff regime.

"I have been encouraged by the readiness of China to consider introducing measures which may help to inhibit a dramatic surge of exports which could destabilize the new conditions under which world trade in textile products takes place," Mandelson said.

"But there is much concern that these measures will not be sufficient," he said in a speech at Beijing's University of International Business and Economics. Under the conditions of the 1995 Multi-Fiber Agreement, China grew into a textile powerhouse capturing some 28 per cent of global exports in 2003.

But with the January 1 expiry of the agreement, the country is forecast to take a 50 per cent global share for textiles and clothing. The EU has favoured holding discussions with Beijing on curbing any sharp fluctuations in exports, while other nations have sought to implement an increase in bilateral textile tariffs on China to stop the flow.

"I think that some moderation and caution in the rate of growth of Chinese exports - pacing it over time - will help to ensure a harmonious adjustment to the new global trading environment," Mandelson said.

The new EU trade chief is on a two-day visit to Beijing during which he will meet Vice Minister Wu Yi and Commerce Minister Bo Xilai. The EU has been trumpeting its progress on forging a partnership with China since last year, when Beijing drew up a strategy paper for its relations with the EU. -AFP

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