"We're still in the process of working through product coverage issues, growth rates," US Trade Representative Rob Portman told reporters, identifying two key components of the potential pact. "But we're getting closer. We're inching closer, but we're not there yet."

This week's meetings in Washington are the fifth round since a surge in Chinese exports unleashed by the end of global textile quotas on January 1 spread alarm in the United States.

Both sides met in Beijing in October, where the talks foundered on Beijing's demand that new quotas increase 20 percent in 2007 and 30 percent in 2008, according to US industry officials. They said Washington offered 12.5 percent growth in 2007 and 14 percent in 2008.

China, with modern factories and cheap labour, has seen clothing and textile shipments to the United States jump 54 percent in the first eight months to nearly $17.7 billion.

Under China's accession to the World Trade Organisation in 2001, Washington can impose "safeguards" until the end of 2008 if China's textiles are shown to be disrupting the US market. These cap growth in exports at 7.5 percent a year.

The United States has already imposed safeguard curbs on imports of Chinese shirts, trousers, bras, underwear, yarn and other textile and clothing products.

But to provide certainty for importers and domestic manufacturers, industry groups have pushed for a comprehensive deal similar to one negotiated by the European Union.

Meanwhile AFP from Beijing reports: China's textile sector is looking to shift some production offshore as it braces for the announcement this week of more limits on its exports to the United States, industry insiders said.

A ruling by Washington on safeguards against five categories of Chinese clothing is set to add new urgency to the strategic rethink underway among mainland textile makers.

Edward Cheung, an analyst with Hong Kong-based Tai Fook Research, said major Chinese manufacturers are considering moving part of their operations to other countries to combat further restrictions against their trade in US markets.