made cotton trousers, cotton knit shirts and underwear. Last month, the EU opened an investigation after reporting that imports of some Chinese textiles have risen by up to 534 percent since Jan. 1. The outcome could mean that the bloc re-imposes some quotas. EU trade chief Peter Mandelson said this week that European producers need «a limited but no less important breathing space.» Mandelson said production and employment have plummeted in the T-shirt and flax yarn industries since the year began. China's Commerce Ministry on Thursday expressed «firm opposition and strong displeasure» to the new U.S. quotas and said it might respond by taking action through the World Trade Organization. Commerce Minister Bo Xilai this week called the restrictions «unfair.» He said the surge was due in part to the failure of Europe and the United States to carry out promises to open markets before the worldwide quota system ended. The Chinese Foreign Ministry appealed to Washington to settle the dispute through dialogue instead of unilateral action.
