The European Union's executive arm the European Commission is to work closely with new Chinese trade negotiator Gao Hucheng to try to find an outcome to the ongoing feud with China over its exports of cheap clothing and textiles.

Gao, a senior official, was named top trade negotiator on Sunday. He has already met with US officials and EU trade chief Peter Mandelson to discuss the end of the global quota system at the start of 2005, which has led to a sharp upturn in exports from the company that many fear will damage other countries' industries.

Both the EU and the US are already considering imposing safeguard restrictions on China to stem the exports.

However, China is striving to moderate the growth itself, according to Trade Minister Bo Xilai.

Bo says that the upturn in exports is a temporary occurrence that will subside or end completely.

He added that Beijing would be very cautious about changing the value of its currency, the Yuan, in response to international calls to revalue it.