From Quota System to Bilateral Monitoring SystemIn September 2007, the EU and China agreed to set up a
bilateral system to monitor Chinese exports of t-shirts, pullovers, men's trousers, blouses, dresses, bras, bed linen and flax yarn. As a result, the Europe Union (EU) will lift the
quotas on ten categories of textiles imported from China starting Jan 1, 2008. This has encouraged Chinese textile producers to optimise their production and narrow the gap between international competitors through international exchanges and cooperation.