The European Commission (EC) announced here on Friday that it has blocked imports of sweaters made in China, after limits on imports were breached a month after both sides agreed on a quota system.

China was permitted to export 69 million sweaters to the European Union (EU) from June 11 to the end of the year, but the EU 's executive said it had stopped issuing import licenses after July 12 because Chinese exports had hit the limits.

"The situation is that we assume the limit as agreed with China in this category has been hit," said EC spokeswoman for trade Claude Veron-Reville.

"For the time being, we are discussing the issue with Chinese authorities and (EU) member states," she added.

China's full quota of sweater imports for the 2005 was 181.5 million units, although that is due to rise to 200 million next year.

China has promised to limit its rapidly growing textile trade with the West, following complaints from officials in Europe and the US that Chinese exports were damaging their own industries.

The limits were agreed voluntarily following China's accession to the World Trade Organization (WTO) and the abolition of the WTO' s multi-fibre arrangement, which freed up trade in clothing and textiles between rich and poor countries.

China's growing exports have caused increasing concern in the United States and Europe, and leaders in both regions welcomed China's announcement on Thursday that it was revaluing its currency and allowing a limited float.

In the long run, the currency changes may make Chinese goods more expensive in Western markets, and prove more effective than quotas in limiting the impact of Chinese textile exports.

Source: Xinhua