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 State Development and Reform Commission (SDRC).

SDRC 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 United States.

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 (2 billionU.S. dollars) 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 (20 billion dollars). 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.

Editor: Yan