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The Ministry of Commerce issued provisional rules on an export quota allocation system late Sunday that determines how much individual Chinese textile manufacturers are allowed to sell to foreign markets.

Domestic textile firms exporting to "countries or regions that impose limitations on Chinese textile exports, or to those that have temporary quantity limitations on Chinese textiles according to bilateral agreements" are required to apply to regulators for temporary export approval permits beginning July 20, a notice posted on the ministry's Web site shows.

The publication of the rules follows a Sino-EU agreement signed earlier this month that limits the growth of certain Chinese clothing exports to the EU.

Many Chinese textile firms have enjoyed better business since China agreed with the EU just over a week ago to limit exports, domestic media have reported, attributing the rise to the removal of uncertainty.

"Over the past week, our orders have recovered quickly," Xinhua News Agency quoted Li Lingmin, vice president of the China National Textiles Import & Export Corp., as saying Sunday. "Prices are also on the rise. The gloomy days are now gone."

China agreed this month to limit annual growth in exports of various categories of textiles to the EU to between 8 and 12.5 percent.

Xinhua said many firms contacted had reported better sales and access to credit since the deal was concluded.

(Shenzhen Daily June 21, 2005)