European Union (EU) Trade Commissioner Peter Mandelson yesterday bowed to pressure from several member states and told China it had a final chance to limit its export of two key products to the EU.

"In view of the seriousness of market disruption in these categories, formal consultations need to begin immediately," said Mr Mandelson, who is effectively cutting short a 60-day investigation into China's textile markets.

Instead, he is asking Beijing to reduce exports of T-shirts and flax yarn or face EU quotas on the products within 15 days of the start of formal consultations, that are expected at the end of this month.

"At the end of these consultations, we will be entitled to place reasonable and temporary limits on these categories unless Chinese action makes it unnecessary," Mr Mandelson said.