A drop in overseas demand for textiles coupled with high domestic cotton prices are likely to have a negative impact on China's textile sector in the next six months. The country, which is the world's largest textile producer, exports around one-third of its products and relies on the international market. However, in the first six months of the current year, China's textile exports rose just 2.96 per cent to US$24.5 billion, dropping sharply from the 29.39 per cent hike in the same period of last year.