3385 textile companies have successfully bid for a share in China's textile export quotas to the European Union next year under a new system of online bidding aimed at making the allocation process fairer and more transparent.

According to the Ministry of Commerce, of the 5,284 companies that took part in the bidding process from Tuesday to Friday last week, 3,385 firms won contracts.

Under the new partial bid process, which is intended to prevent a repeat of last month's stockpile, 18 per cent of China's total textile export quotas to the EU in 2006 were allocated. Another 12 per cent of the total quotas have been reserved for a similar bidding process.

The majority of the export quotas (70 per cent), however, are allocated based on textile dealers' shipments from the previous year.