The Chinese Ministry of Commerce will shape its approach to textiles exports during the second half of the year based on the amount of textiles it shipped to the EU between March 2004 and February 2005, according to a report in the Oriental Morning Post.

The Ministry held a consultation in Beijing yesterday in which it requested the opinions of domestic businesses on the distribution of quotas, following China's agreement with the EU to restrict its exports on Friday.

China's Commerce Minister Xilai and EU Trade Commissioner Peter Mandelson made a pact that China would restrict exports of ten categories of textile products until 2007.