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US issues new rules for monitoring textile imports

In a move that could eventually test Sino-American relations, the Reagan administration Friday issued new rules to help US textile manufacturers meet import competition.

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The rules, which set standards for determining when imports disrupt or threaten to disrupt domestic production, open the way for specific action to curb foreign textile sales in the US.

The White House acted 10 days after the US textile industry agreed to suspend a charge that China was subsidizing textile sales. China has threatened to retaliate by cutting purchases of farm products and other American goods if it feels the US is unfairly stemming its textile exports.

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