Chinese Premier Wen Jiabao on Wednesday assured South African President Thabo Mbeki that China is willing to restrict its textile exports to South Africa.

The two governments also concluded a draft agreement on trade between the two countries along with other agreements covering wide range of fields.

The Chinese premier said at a press conference in Cape Town that he and President Mbeki had reached "full understanding and accommodation" on the issue.

"We both agree that the issues in the textile trade will in no way compromise the overall economic relations and trade between the two countries," he added.

Wen told reporters after talk with Mbeki that China would not seek to take over the market share of other countries by simply enlarging the scale of its textile production.

He pledged that China would continue to honor World Trade Organization (WTO) rules, while doing its best to help affected countries enhance their own capacity in textile production.

"We are willing to take self-restrictive steps and measures to restrict China's export of textiles to South Africa in order to ensure the stability of the textile market in this country," said Wen.

The Chinese premier said that China will also render necessary assistance and expertise to South African textile industry.

He added that Mbeki had made "very positive responses" and toldhim the "issue is over".

Editor: Donald