The two textile agreements eliminate most uncertainties faced by Chinese clothing enterprises when exporting goods to two of the most important overseas markets.

It's almost certain that China's trade surplus will remain at a high level in 2006. Obviously, there will be further pressure from trade protectionists in the United States.

The U.S. side has politicized the trade issue and largely neglected international practices, which makes it very difficult for people to expect any substantial results from the talks.

The trend became apparent at the end of last year.

What China got in the past few years is only some pretty figures. American and foreign companies have gotten the real profit.

The government's role is necessary for big deals; foreign parties are monopolies while Chinese parties are diversified and do not have significant bargaining power.

Both sides should work to find pragmatic ways to address the deficit. For example, as China has proposed many times, the United States should ease its rigid controls on technology exports.

The expected drop in trade surplus doesn't match the reality of the situation.

I would like to attribute the surplus to the weak domestic demand.

China's offer may be to limit exports as a possible resolution to this dispute. What the government may offer will depend on talks to come with the EU.