A new report released by the Korea Federation of Textile Industries predicts that China's textile and clothing exports will be 150 per cent higher in 2005 than they were in 2001.

The document, "Effects from the abolition of the textile quota system," suggests that the liberalisation of the world's textile trade among World Trade Organisation members in 2005 will raise China's share of the global market from 20 to 50 per cent.

The report also notes that Chinese-made textiles and clothing exports have already increased rapidly in the sectors that have already seen their quotas lifted by the United States and others last year.

Indeed, among the 29 US apparel categories without quota limits, $1.79 billion worth of products came from China last year, up 117.5 per cent on the previous year.

The average price of the imported goods from China also declined by 44.1 per cent from $5.79 to $3.24.

Korean companies are likely to be hard hit by climbing Chinese exports since the country relies heavily on the textile quota system for export destinations such as the United States and Europe.