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China's textile exports will increase 15 percent in 2007 to reach US$161 billion, according to Cao Xinyu, deputy director of China Chamber of Commerce for the Import and Export of Textiles (CCCT).

Cao said that Chinese textile exports will continue to grow despite trade barriers.

According to Cao, China's textile industry will benefit from its industrial sophistication and its production capacity as well as from export agreements signed with the European Union and the US last year.

China launched bilateral negotiations on textile exports with the EU and the US last year.

The China-US agreement limits import growth for 34 categories of textiles to between 10 and 17 percent per year in the period 2006-2008 and eliminates quotas after 2008. The EU textile deal covers 10 product categories, with broader definitions.

"The agreement has created a stable environment for exports of the ten categories, and also created favorable development conditions for exports of other categories," said Cao.

Cao predicted that foreign merchants will be active in the Chinese market this year.

Du Yuzhou, chairman of the China National Textile and Apparel Council (CNTAC) agreed with Cao, saying that China's textile industry would develop high quality products.

The Ministry of Commerce forecast a gross output value for China's textile industry of 2.5 trillion yuan (US$312.5 billion) in 2006, a 20 percent growth year on year.

CNTAC statistics show that from Jan-October 2006, China's major textile enterprises chalked up sales of 1.98 trillion yuan, and turnover for the whole year is expected to hit 2.4 trillion yuan, 1.67 times more than in 2001.

China's textile industry is expected to rake up profits of 92.8 billion yuan in 2007, according to CNTAC.

(Xinhua News Agency January 4, 2007)