A group of 10 Japanese towel makers with production bases in China said Friday it has linked up with a Chinese group of textile traders in an effort to prevent Japan from slapping a restriction on towel imports from China.

Group head Toshihiro Yagi told reporters both sides agreed during an Aug. 16 meeting in Qingdao, Shandong Province, to refrain from expanding their towel exports to Japan until hearing Tokyo's decision on whether it will invoke the "safeguard" restriction. The decision is expected before Oct. 15.

Some 30 companies from the Japanese and Chinese groups, which took part in the Qingdao meeting, represent roughly 70 percent of China's towel exports to Japan, said Yagi, president of Ehime Prefecture-based towel maker Toyo Terry Co.

Yagi said he has filed a petition with the Ministry of Economy, Trade and Industry to let the issue of surging towel imports be solved though such private-sector efforts.

Since April, the ministry has been investigating the feasibility of invoking the safeguard curb, permitted under World Trade Organization rules, in light of a request from the Japan Towel Industrial Association.

The umbrella group of 457 towel makers nationwide has called for the restriction of up to three years against imports from China and Vietnam, claiming surging imports of the lower-price foreign towels are seriously damaging the industry.

In 2000, the nation's towel imports from China soared 17.3 percent to 45,478 tons, while imports from Vietnam were up 11.9 percent to 9,492 tons, according to METI's figures. In May, they were up 26.7 percent for China and 16.3 percent for Vietnam from a year earlier.