Minister of Commerce Bo Xilai and European Union (EU) Trade Commissioner Peter Mandelson began talks in Shanghai Friday afternoon to seek a solution to the textile trade dispute between the two sides.  

Earlier this week, Mandelson rejected a return to the quota system for textiles, saying his policy is based on the need to "manage change and adjustment, rather than to manage trade" -- preferably through a negotiated agreement.

The EU, which claimed that textiles imports from China have substantially increased this year after the elimination of global quota on January 1, 2005, announced late last month to take safeguard measures against some textile imports from China.

Analysts here noted Friday's talks may resulted in an agreement that would prevent the China-EU textile trade dispute from escalating.

(Xinhua News Agency June 10, 2005)