China scrapped the export tariffs on 17 Chinese-made textile goods subject to the European Union's new trade restrictions on Monday.

It is the fourth time China readjusted its export tariffs on textile products this year. China still collects export tariffs on 51 other textile goods.

The decision was made by the commission on July 21 after it was approved by the State Council, China's cabinet.

Zhao Yumin, an expert with China Academy of International Trade and Economic Cooperation under the ministry, said major importers, like the EU and the United States, are using quantity controls on imports of Chinese textile products, so there is no need to levy tariffs on these products anymore.

"Besides, the management of tariffs has its uncertainties, which might cause damage to the overall industry," said Zhao.

Experts hope the measure will help Chinese textile producers make a better living, especially after the appreciation the Renminbi, which has further encroached on the profits of textile companies.

Textile traders and producers in China welcomed the decision, saying the readjustment of tariffs will help companies to lower costs.

The EU also expressed understanding. Claude Veron-Reville, spokeswoman for the EU was quoted by overseas media as saying that as there have been the new-set restriction on the quantity of China's textile imports, tariffs are not necessary for these products.

Both the EU and the United States have moved to limit their imports of Chinese textile goods despite global textile liberalization arrangement as of January1, 2005.

Early this year, the United States set an annual growth limit at 7.5 percent on China's textile imports. The EU had been also threatened to take similar measures but later the EU and China reached a consensus on the issue. With an agreed base quantity, the annual growth of China's textile export to EU market is set to be limited between 8 percent and 12.5 percent from June 11, 2005 to the end of 2007.

China began to set export tariffs on 148 items of textile products on January 1, 2005, trying to prevent the rapid growth of textile exports after the global quota system was put to an end. Then on May 20, the government decided to raise export tariffs on 74 types of textile products. But China's self-discipline measures didn't receive positive responses from the EU and the United States. On May 30, China announced that it would scrap export tariffs on 81 types of textile products as of June 1.

China's textile products are still under great pressure, especially the 51 types which are still levied export tariffs, noted experts. The China Chamber of Commerce for Import and Export of Textiles predicted that in the second half of this year, about 30 percent of China's 19 million textile workers will lose their jobs because of the restrictions from the EU and the United States.