China's textile export is expected to face a fall from last year's 20.7 percent increase to around 15 percent this year, according to the State Development and Reform Commission(SDRC).
Total industrial output value of key textile enterprises is expected to grow by about 20 percent in 2006, registering a fall of 6 percentage points compared to 2005, said SDRC.
Reason for decrease will be due to export limits imposed on China's cotton products by European countries and the United States.
Cancellation of global quota system in 2005 helped China's textile industry to grow rapidly.
Cotton yarn output rose 23.6 percent year on year, where as cotton product export grew 31.7 percent year on year.
The industry registered profits of 16 billion yuan ($2 billion) an increase of 77 percent.
Fixed asset investment of the industry rose 35 percent year on year to reach 159.7 billion yuan ($20 billion).
Shortage of cotton supplies and tough competition on the domestic market was faced by the industry.
About 5.7 million tons of cotton products in 2005 were produced by China but demand for raw cotton is slated to cross 10 million tons during 2006.