China hits back on sock quota

China warned that it would "retain the right to take further actions" within the World Trade Organization (WTO) framework following the US decision to limit imports of Chinese-made socks. The warning follows a US announcement earlier in the week citing "both disruption and a threat of disruption" in the U.S. market by growing Chinese imports. The quota will be imposed following US government talks with China on the issue. If the talks fail to reach an agreement, the quota will last for one year, US officials said. A Chinese government spokesman said the US moves violate conditions delineated in the legal documents for China's WTO admission and US domestic rules on the procedure, as well as running counter to the WTO's principle of free trade.