``If they use the textile issue as an excuse to force adjustments of the yuan, then it will make things more complicated,'' he said in an interview during a meeting of Asia-Pacific trade ministers on Jeju island, South Korea.

The United States and the European Union are pressing China to change the yuan's peg to the dollar, saying the link gives mainland exporters an unfair advantage and contributes to their trade deficits. A surge in textile imports from China has already prompted the United States and the EU to begin imposing trade restrictions and further curbs are being considered.

Bo said China may file a complaint with the World Trade Organization over the US and European quotas. ``When we go and if we go, this is up to us. This is China's right,'' he said. ``It depends on the attitude of the US and the EU.''

Under the terms of China's 2001 WTO accession agreement, other countries may restrict the growth in imports of China-made textiles to 7.5 percent, a so-called safeguard measure, in cases where an increase in shipments causes ``market disruption.''

WTO rules stipulate that the United States must hold formal consultations with China to decide how long the safeguard measure stays in place. Unless otherwise negotiated, the caps can remain in place for a year.

The United States and the EU failed to fulfill their WTO pledges because they waited until the quota textile expiration date to phase out most of the product categories that Chinese manufacturers are most competitive in, Bo told reporters on May 30. The quotas were supposed to be phased out in a more gradual way to avoid a sudden surge, he said.

BLOOMBERG