China has denied U.S. allegations of unfair and illegal export policies, and says it will work with the World Trade Organization to settle the accusations.

In a brief statement Sunday, China's Commerce Ministry said Beijing respects the rules of the WTO and rejects trade protectionism. It agreed to work with the world body to address a U.S. complaint that China appears to be using measures that violate WTO rules.

The United States filed its complaint Friday, in an attempt to halt Chinese export subsidy programs.

U.S. Trade Representative Susan Schwab and U.S. Commerce Secretary Carlos Gutierrez said the policies promote Chinese-branded products at the expense of American workers and businesses. 

The World Trade Organization will rule on the dispute unless the United States and China come to a resolution within the next 60 days.

The U.S. government says China's protectionist policies provide export subsidies to promote designated name-brands of everything from textiles and refrigerators, to medicines and chemicals.

A group representing the U.S. textile industry has called on the incoming administration of President-elect Barack Obama to respond to China's alleged protectionism.

The National Council of Textile Organizations says China has captured more than half of the U.S. apparel import market for the first time by pumping $10 billion in new export subsidies into the textile sector since July.

Some information for this report was provided by Reuters.