China plans to scrap curbs on its textile exports to the US and European Union in the latest escalation of a dispute that is souring Beijing's trading relations with its two biggest export markets.

Bo Xilai, commerce minister, said on Monday China would cancel export tariffs on 81 apparel and textile products from Tuesday in response to decisions by the EU and US to reimpose limits on Chinese textile shipments. But Mr Bo stopped short of threatening to take China's complaints to the World Trade Organisation, although he insisted it was an option Beijing might consider in future.