South Africa and China signed a key pact to cushion the impact of Chinese textile imports here.
Chinese Premier Wen Jiabao said China was 'willing to take self-restrictive measures in order to ensure stability' in South Africa's ailing textile market.
'On the issue of the textile trade between South Africa and China, President Thabo Mbeki and I reached a full understanding between ourselves,' Wen told journalists in parliament where the deals were signed.
'We both agree that the issues in the textile trade will in no way compromise the overall economic relations between the two countries,' said Wen.
South Africa's textiles sector has been hit hard by cheap imports and ready-made products from China, and Mbeki's government has come under increasing pressure to deal with the problem.
Companies and unions agree that some 25,000 jobs have been lost in the sector in the past two years.
Wen said China was willing to cap textile exports.
'We are willing to take measures to restrict the export of textiles to South Africa to ensure the stability in the textile market in this country,' he said, adding that Beijing would abide by World Trade Organization rules.
'China will continue to honor the WTO rules and regulations in the textile industry,' said Wen.
