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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.

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