A US textile trade group has reacted angrily to measures taken by the Chinese government to help its textile industry - and says it is further evidence that tough action is needed when existing restrictions against Chinese imports are lifted at the beginning of next year.

The comments from the National Council of Textile Organizations (NCTO) came after the Chinese government last week decided to increase the export tax rebate currently given to Chinese textile and apparel exporters from 14% to 17%.

This move followed two similar increases already given to Chinese industry earlier this year, for an overall increase in the export rebate from 11% to 17% - an increase of 55% since July 2008.   

As a result, NCTO says, Chinese exporters have seen export subsidies from the Central Government increase from $19bn to $29bn in the last four months.   

NCTO president Cass Johnson now wants the Obama Administration to take tough actions against what it describes as "China's predatory practices." 

In particular, the trade group wants the new Congress to self-initiate trade remedy cases against China, if imports surge when existing quotas are removed on 1 January 2009.