Textile enterprises reported sales of 2.42 trillion yuan (318 billion U.S. dollars) in 2006, 21.33 percent higher than the previous year but five percentage points lower than the growth rate in 2005.

Related readings:  China mulls tougher taxes on resource exploitation  Textile to champion quality over quantity  China reins in rapid growth of textile, clothing export  China sets up US$175 million textile industry fund

After-tax profits reached 88.3 billion yuan, a rise of 27.96 percent but eight percentage points lower than in 2005.

Fixed asset investments in the industry totaled 203 billion yuan (25.3 billion U.S. dollars) in 2006, a year-on-year rise of 21 percent, but 17 percentage points lower than the previous year.

Industry profits declined for the sixth straight month, according to the report, which was published in China Securities Journal.

China's exports of textile, clothing and accessories in Januarygrew 18.55 percent compared to the same month last year. The growth rate was 12.3 percentage points lower than the growth rate in November, 12.2 percentage points lower than December's rate of growth, according to statistics of China's General Administration of Customs.

Chinese textile and clothing companies have enjoyed sustained rapid export growth following the country's accession to the WorldTrade Organization (WTO)(find more in WTO package) in 2001.

However, Chinese textile and clothing exports have encountered criticism from Europe, the United States and some African countries.

The U.S. government filed a complaint with the WTO in early February, alleging that China is using export subsidies to help its companies, including those in the clothing sector, to compete in world markets.

1

2

(For more biz stories, please visit Industry Updates)