Negotiators from the US and China just ended their textile talks, on a positive note in San Francisco, last week.

However, there is much ground to be covered to reach a conclucive agreement over the vexxed issue of textile restrictions being put in place by the US over cheap Chinese textiles.

Hopes of an agreement to be signed by China''s President Hu Jintao and US President Bush in September, gained currency according to a local media report published Monday.

Li Lingmin, Vice-President of the China National Textiles Import and Export Corp was reportedly quoted saying talks would take place in Beijing ending August.

According to Li, a final final agreement is likely to be signed in September when the two leaders meet.

The Chinese President is to visit the United Nations next month, and is expected to hold talks with the US President Bush.

Meanwhile, sources in the Chinese Commerce Ministry stated that the fourth round of textile talks would take place in the Chinese capital.

San Francisco talks did not yield much in terms of progress say observers but would go in a long was to reach a broader agreement as has been mentioned earlier.

Currently figures indicate that the US imports of Chinese textile reached $8.3 billion in the first six months, up 76 percent from last year.

US has imposed a 7.5 percent a year safeguard on Chinese imports as per the terms that China agreed when it joined the WorldTrade Organization in 2001. These safeguards can be renewed until the end of 2008.