Restrictions on Chinese exports of 21 types of garments and textiles into the US have this week taken effect.

After three months of discussions between the two countries the restrictions came into effect on 1 January. The transaction will allow a slow and controlled growth in China's exports without any sudden surges that might damage importing countries or other exporting countries. Garment exports will be limited to a growth rate of 10 percent in 2006, 12.5 percent in 2007 and 15 percent in 2008. Textile growth rates have been restricted to 12.5 percent and 15 percent in 2008. The restrictions will last until 2008.

Since 2001, the US has lost almost 400,000 jobs in the textiles industry. It partly blames this on the increased level of competition from China.