BELTING Oct 9: China, seek ing to avoid damaging US retal latlon against Its lucrative tex tile and garment trade, has withdrawn trading rights from two firms making Illegal exports. the China Dally reported today, reports AFP

A third company has received a 'suspended' sanction, the English-language dally quoted the Ministry of Foreign Trade and Economic Cooperation as announcing Friday, adding staff directly Involved In the violations would be severely punished.

The report — which comes amid US warning that illegal exports are Jeopardising China s multi-billion dollar garment and textile trade with the United States — gave unusually detailed Information about the companies.

The China National Native Produce and Animal By-product Corp’s Shanghai Tea Subsidiary. Southern Guangdong province's Sihul Wei Fat Knitwear Co. and Southeastern Fujian's Xiamen Bel An Knitwear Co liad "turned a deaf

ear" Io Uie ban on Illegal textile export*, ibe report quoted an official as saying

They have caused negative effect (on China* image) by using a third nation or region s label of origin to export Chinese-made garments to countries with import restrictions.- the officials said

The three companies, all of which had a Hong Kong connection. have used made in Taiwan" labels thev said

Shanghai Tea had Its export licence suspended for one year for sending thousands of falsely labelled men's shirts to the United State* tn May. while cash from the illegal deal was confiscated. It said

Slhul Wei Fat was similarly dealt with for exporting underwear to an unspecified destination. while Xiamen Bel An received suspended punishment after It* sweater* were seized and shipped back upon arrival In Taiwan last October, the paper said