Vice-Premier Wu Yi rebuked the US for unilaterally limiting textile imports from China on Jun 13.

    Disputes, she said, should be settled within the World Trade Organization (WTO) framework.

    Wu's comments came days after the country's 10-hour negotiations with the European union (EU) hammered out an agreement and averted a textile trade war.

    Making the remarks at the 2005 Pacific Basin Economic Council (PBEC) International General Meeting in Hong Kong, Wu lashed out at recent US moves to impose unilateral limitations on Chinese textile imports.

    Addressing her speech to hundreds of business leaders in the region at the PBEC meeting, Wu said: "As countries forge closer economic ties and achieve large scale economic links with others, trade frictions are absolutely normal.

    "But the setting of unilateral restrictions on some Chinese textile products by the US has impaired the rights of mainland enterprises," she said.

    "I strongly urge that countries should honour the WTO's free trade rules. Only through dialogue and negotiation based on an equal footing... can the textile trading problem can be completely resolved," she added.

    Wu said the China-EU deal was proof that trade rows can be resolved on the principles of equality, mutual benefit and respect.

    On Saturday, China and the EU reached agreement on the annual growth of 10 categories exports to the European market.

    The annual growth in the 10 categories of textile exports will be limited to between 8 and 12.5 per cent until the end of 2007.

    The US last month imposed quotas on Chinese textile products, less than six months after global quotas expired on January 1.

    Meanwhile, China is working to meet WTO trade regulations by developing a more open and dynamic economic system.

    To sustain long-term economic growth, Wu said efficient energy consumption and safeguarding the environment were crucial for fostering sustainable economic development.

    "China insists on implementing sustainable development strategies...we cherish our invaluable natural resources," said Wu.

    She said China would ensure a balance between economic growth and the sustainability of human and natural resources.

    China will step up its use of coal, oil, natural gas and nuclear power as well as other new energies and is willing to join hands with other countries in exploring mining and other resources.

    The government's macro economic-policies have proven effective in sustaining China's fast-paced and steady economic growth and cooling down overheating caused by excessive investment in certain industries such as steel, aluminium and cement.

    In turn, investment in public utilities, including agriculture, energy, electricity, transportation, education and medicine, have been hugely increased.

    "The Chinese Government is fully capable of implementing macro economic-policies to bring [the rapidly growing economy] to a soft-landing and sustain further rapid and steady development, " Wu said.

    Wu also mapped out five-point principles to call on the countries in the Asia-Pacific region to join hands in world peace and development.