(Xinhua)
Updated: 2007-12-26 09:20

The standards require exporters to have a minimum registered capital of 500,000 yuan (US$68,250), at least two years of export operation experience and no violations of intellectual property or environmental protection laws.

"The bilateral monitoring system could eliminate the practice of quota trading between some export companies," Zhao said.

The MOC didn't reveal how many qualified exporters had applied under the online system. But experts believe that exporters' quality assessment and license application and approval systems are expected to help reduce the often vicious competition among domestic enterprises.

"China has surplus production capabilities the in textile industry and competition is fierce, so we cannot guarantee that Chinese textile exports to the EU wouldn't surge again," Zhao Yumin, a research fellow with the Trade and Economic Cooperation Institute of the MOC, told Xinhua.

Commenting on the possibility of "Made in China" products flooding the EU, Zhao Qiuyan said that besides government efforts, domestic exporters should exercise restraint, since the EU might adopt tightening measures if there was a new surge of Chinese goods.

Under paragraph 242 in the "Report of the Working Party on China's Accession to the World Trade Organization (WTO)", if there is market disruption caused by a surge of textile exports from China, other WTO members are permitted to resume curbs.

This past October, MOC vice minister Gao Hucheng urged Chinese textile makers to develop more in-house brands, streamline their product structure and narrow disparities with international competitors through exchanges and cooperation.

Industry watchers said if the bilateral monitoring system functioned smoothly, it would serve as a good example for dealing with the Sino-US textile quota system, which is set to expire by the end of 2008.

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