China plans to scrap curbs on its textile exports to the US and European Union in the latest escalation of a dispute that is souring Beijing's trading relations with its two biggest export markets.

Chinese commerce minister Bo Xilai said yesterday China would cancel export tariffs on 81 apparel and textile products tomorrow in response to decisions by the EU and US to reimpose limits on Chinese textile shipments. But Mr Bo stopped short of threatening to take China's complaints to the World Trade Organisation, although he insisted it was an option Beijing might consider in future.

The European Commission expressed surprise at China's decision to cancel its proposed tariffs, given the extensive talks between Chinese and European negotiators in recent weeks.

EU officials also rebutted Beijing's claims that the EU's decision to single out two textiles products for possible sanctions - T-shirts and flax yarn - might violate WTO legislation.

"The Chinese authorities were fully aware of the move we were going to take ... we are acting within the framework of WTO rules," said a spokeswoman for Peter Mandelson, the EU's trade commissioner.

The safeguard measures could come into force in 15 days if WTO talks fail to resolve differences between the EU and China.

The US trade representative's office said it had no comment on China's move.

China's sales of some apparel and textile products to the EU and US have accelerated rapidly following the end of the system of global quotas on January 1st.

Under pressure from domestic manufacturers and developing countries struggling to compete with China, the US and EU have responded by invoking a WTO agreement that allows them to reimpose quotas when there has been a "surge" in imports.

Criticising the move, Mr Bo said the US and the EU had failed to prepare their textile industries for the end of trade restrictions.

China imposed export tariffs in two stages this year in an effort to slow sales to the US and EU. It insists the tariffs are beginning to have an impact. Mr Bo said the EU and US decision to impose quotas was based on four months data. He said the move was "unreasonable and unscientific".

But he acknowledged that sales of some apparel items in the first four months had increased by 250 per cent year-on-year to the US and by 82 per cent to the EU.

He said these were "normal" increases from a very low base under the previous quota regime.

With protectionist pressures growing, Mr Bo stressed Beijing was ready to enter further talks to resolve the issue. He is scheduled to meet Carlos Gutierrez, the new US commerce secretary, and Rob Portman, the incoming US special trade representative, in the near future.