The leading China Daily, often used by the government to convey its opinion, said much was at stake and concessions must be made.

"As in most trade disputes, unilateral action is not constructive. Trade wars benefit no one," the newspaper said in an editorial.

"The United States and EU should lessen their demands to keep the ball rolling."

The comments came ahead of a visit to Beijing Thursday by US Commerce Secretary Carlos Gutierrez for talks with his counterpart Bo Xilai.

US Trade Representative Rob Portman arrives Saturday for discussions with Vice Premier Wu Yi, known as the "Iron Lady" from her tough negotiating style while minister of foreign trade and economic cooperation between 1993 and 1998.

Wu led China's talks for its entry to the World Trade Organisation (WTO), to which it was admitted in late 2001.

Negotiations will centre on the flood of cheap Chinese textiles exports swamping US markets since the end of the global quota system on January 1. Washington has also been pressing China to change its currency regime.

China edged closer to a trade war with the EU and US this week after scrapping export tariffs on a range of textile products. They came into effect Wednesday and are in response to restrictive measures taken by Washington and Brussels.

Commerce Minister Bo said the US and EU must provide harder evidence to back up their claims that Chinese exports are disrupting markets. EU officials rejected that argument, and Portman acknowledged there was alot to talk about.

"We face some serious challenges in our bilateral trade relationship with China. I look forward to addressing some of these challenges in my discussions in Beijing," he said in Washington.

The China Daily said all the parties involved should be aware that the outcome of talks on the issue will have repercussions for the development of global free trade.