China and the United States signed a memorandum on trade in textile and apparel in London on Tuesday after seven rounds of tough talks.

"This is a win-win result, which once again proves that any trade problem can be solved with reason and intelligence from both sides on an equal and fair basis," said Bo Xilai, China's minister of commerce, who signed the deal with US trade representative Rob Portman.

"However, the agreement is not as good as expected as quota control in trade is totally outdated in a world of economic liberalization and free trade," Bo added.

The deal, inked after five months of talks, covers 21 of China's textile products exported to the US, 16 of which were not safeguarded before.

The safeguards were a provision of China's 2001 entry into the World Trade Organization, which allows WTO members to restrict the growth in imports from China to 7.5 percent annually when there is a market-disrupting surge.

The current safeguards do not cover all categories of the imported clothing and textiles and have to be renegotiated each year.

The new deal would allow China's exports of most clothing and textile categories to the US to grow at 10 to 15 percent in 2006, 12.5 to 16 percent in 2007 and 15 to 17 percent in 2008.

It lasts through 2008, one year longer than a similar deal that China reached with the 25-nation European Union earlier this year.

China's signing of the textile agreement with the United States, proves once again that China is a trust-worthy country whose words really count, said the Chinese minister.

It took China, a developing country with huge population, almost two decades to develop its textile industry, a lower-middle-end industry on which nearly 20 million workers live and support their families, Bo said, urging the world to present a better understanding of and offer more support to China.

For his part, Portman said that the agreement is equal and fair and provides both countries with a stable and predictable future in textile trade.

Solution of Sino-US textile disputes is in common interests of both sides: spokesman

A spokesman of China's Ministry of Commerce said here on Tuesday that the solution of the Sino-US textile disputes is in the interest of companies from both countries, and will promote the stable development of bilateral economic and trade ties.

The spokesman made the remarks while commenting on a memorandum of understanding on textiles and garments signed Tuesday by Chinese Minister of Commerce Bo Xilai and US Trade Representative Bob Portman in London.

The spokesman said that under the agreement, which will take effect on Jan. 1, 2006, and expire on Dec. 31, 2008, the two sides agree to limit Chinese exports of textile products to the US market until the end of 2008, instead of 2007.

The deal was reached after seven rounds of talks between the two sides and based on the principle of equality, mutual benefit and common concerns, the spokesman said.

He said the resolution of the Sino-US trade disputes will be beneficial to enterprises of the two countries, and create a "stable and predictable" trade environment for businesses of both sides.

The frequent US restrictions on Chinese exports in the past had caused instability in the textile trade between the two sides, and harmed the normal and orderly development of bilateral trade, the spokesman said.

Sino-US textile deal welcomed: Ministry of Commerce

A spokesman of China's Ministry of Commerce said on Tuesday that the solution of the Sino-US textile disputes is in the interest of companies from both countries, and will promote the stable development of bilateral economic and trade ties.

The spokesman made the remarks while commenting on a memorandum of understanding on textiles and garments signed Tuesday by Chinese Minister of Commerce Bo Xilai and US Trade Representative Bob Portman in London.

The spokesman said that under the agreement, which will take effect on Jan. 1, 2006, and expire on Dec. 31, 2008, the two sides agree to limit Chinese exports of textile products to the US market until the end of 2008, instead of 2007.

The deal was reached after seven rounds of talks between the two sides and based on the principle of equality, mutual benefit and common concerns, the spokesman said.

He said the resolution of the Sino-US trade disputes will be beneficial to enterprises of the two countries, and create a "stable and predictable" trade environment for businesses of both sides.

The frequent US restrictions on Chinese exports in the past had caused instability in the textile trade between the two sides, and harmed the normal and orderly development of bilateral trade, the spokesman said.