China and the European Union ( EU) initialed an agreement in Beijing Monday on extending the sixth bilateral agreement on textile products for one year to December 31, 2000.

The two sides initialed the agreement in the form of " exchanging letters", according to sources with China's Ministry of Foreign Trade and Economic Cooperation (MOFTEC).

China and EU will continue to negotiate on the seventh agreement on textile products and will replace the extended one with the new agreement to be signed, the sources said.