China's textile industry will grow by more than 15 percent in terms of output value, profits and exports year-on-year in 2007, forecast experts with the National Development and Reform Commission (NDRC).

With technological innovation and optimization of industrial structure, Chinese textile enterprises have improved their ability to compete on the world market, according to a study by the NDRC experts.

Chinese textile enterprises recorded a total output value of 2.46 trillion yuan (307.7 billion U.S. dollars) in 2006, a rise of 21.3 percent from a year earlier. Their profits hit 88.3 billion yuan, up 28 percent.

The sector's exports amounted to 147.1 billion yuan worth last year, a year-on-year rise of 25.1 percent. The export volume included 52.3 billion U.S. dollars of textiles, up 18.8 percent, and 94.8 billion U.S. dollars of clothing, up 28.9 percent.

Influenced by the export quotas imposed by the European Union and the United States, Chinese textiles and clothing exports to these regions dropped markedly last year.

Exports to the European Union totaled 23 billion U.S. dollars in 2006, up 21.7 percent year-on-year, but the growth rate was 33.6 percentage points lower than the previous year. Exports to the United States hit 23.1 billion U.S. dollars last year, up 18.1 percent year-on-year, but the increase rate was 48 percentage points lower than the previous year.

Increases were recorded in exports to other countries and regions which did not impose quotas on Chinese textiles and clothing, according to experts.

The study says Chinese textile enterprises will face more pressures in export trade in 2007. The pressures would result from revalued Renminbi, cuts in the export tax rebate and export quotas imposed by the European Union and the United States.

Shortage of cotton supply, imports of raw materials, lack of labor force and higher requirements for environmental protection will also pose challenges to the development of China's textile industry, according to the study.