China has excess supplies of approximately 86.9 per cent of its textiles, according to a Ministry of Commerce survey quoted by Asia Pulse.

The survey suggested that the problem would worsen, considering that investment during the first five months of 2005 leapt 39.7 per cent.

The country is currently fighting measures by the EU and the US to restrict its textiles and clothing exports following the end of the trade quota system at the start of 2005.