A spokesman of China's Ministry of Commerce said in Beijing on Tuesday that the solution of the Sino-US textile disputes is in the interest of companies from both countries, and will promote the stable development of bilateral economic and trade ties.

The spokesman made the remarks while commenting on a memorandum of understanding on textiles and garments signed Tuesday by Chinese Minister of Commerce Bo Xilai and US Trade Representative Bob Portman in London.

The spokesman said that under the agreement, which will take effect on Jan. 1, 2006, and expire on Dec. 31, 2008, the two sides agree to limit Chinese exports of textile products to the US market until the end of 2008, instead of 2007.

The deal was reached after seven rounds of talks between the two sides and based on the principle of equality, mutual benefit and common concerns, the spokesman said.

He said the resolution of the Sino-US trade disputes will be beneficial to enterprises of the two countries, and create a "stable and predictable" trade environment for businesses of both sides.

The frequent US restrictions on Chinese exports in the past had caused instability in the textile trade between the two sides, and harmed the normal and orderly development of bilateral trade, the spokesman said.

Source: Xinhua