The growth rate of China's textile exports is expected to fall
from last year's 20.7 percent increase to around 15 percent this
year, according to the National Development and Reform Commission
NDRC predicts the total industrial output value of the nation's
key textile enterprises will grow by about 20 percent in 2006, a
decrease of 6 percentage points from the growth rate in 2005,
Monday's Shanghai Securities News said.
The report attributed the lower growth rate to the export limits
imposed on China's cotton products by European countries and the
In 2005, China's textile industry grew rapidly thanks to the end
of the global quota system. China's cotton yarn output rose 23.6
percent year-on-year, while cotton product export grew 31.7 percent
year-on-year. The industry made 16 billion yuan (US$2 billion) in
profits, an increase of 77 percent.
The industry's fixed asset investment rose 35 percent
year-on-year to reach 159.7 billion yuan (US$20 billion). The
industry also experienced a shortage of cotton supplies and tough
competition on the domestic market.
Statistics show that China produced 5.7 million tons of cotton
products in 2005, but its demand for raw cotton is expected to
surpass 10 million tons in 2006.
(Xinhua News Agency March 13, 2006)