Beijing's announcement that it has scrapped tariffs on textile exports is unlikely to seriously disrupt relations with the United States and the European Union, mainland scholars said yesterday. Jin Canrong , vice-dean of Renmin University's School of International Relations, said Beijing's move was not a tit-for-tat reaction against quotas imposed by the US and those threatened by the EU. 'It is more a tactical gesture before the upcoming negotiations,' he said. 'It is a kind of bargaining manoeuvre, not a challenge. 'On textile issues, China does not have the power to retaliate because it is mainly a supplier,' he said, adding that differences between China and its two main trading partners should not be exaggerated because textiles were just a part of their trade relations. Professor Jin explained that huge domestic pressure from the textile industry was the key reason behind Beijing's decision to revoke the tariff increase it announced on May 20. He said another reason was that the central government had come to realise that some textile export items would still face sanctions no matter what measures it took, while others - especially those produced by local companies in which US companies had a stake - would not. 'Trade always requires negotiations. It is a matter of market behaviour, and trade policies are the result of interest groups' politics,' he said. Zhang Haibing , deputy director of the department of World Economy Studies at the Shanghai Institute for International Studies, said the root of the conflict lay in the yuan peg and the US trade deficit. 'The textile issue is now being used to pressure China to revalue the yuan,' she said. But she did not think trade conflicts would jeopardise relations with Washington and Brussels. 'You see trade conflicts between China and the US emerging every year but our trade volumes still keep growing.' China's rise would inevitably shock other countries, she said. 'Conflicts and disagreements will come with competition. But this is not a bad thing because it not only helps Chinese firms have healthy competition and follow international rules, but also helps external firms to understand China.' Dr Zhang said yesterday's announcement might cause a short-term surge in exports, but the impact would be limited because China was producing low-end products while the EU and the US were high-end markets.