The cynosural talks between Chinese Commerce Minister Bo Xilai and European Union (EU) Trade Commissioner Peter Mandelson were still going, said Bo at around 6: 00 pm on Friday in east China's Shanghai Municipality.

Bo, emerging from the conference room after talking with visiting Mandelson for some four hours, told reporters that both sides were very "frank" in the conversation and still discussing " technical specifics".

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 Jan. 1, 2005, announced late last month to take safeguard measures against some textile imports from China.

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

Source: Xinhua