Despite a restriction on China-bound investments, Taiwan's textile industry is planning to plough more than NT$20 billion (US$576 million) into China this year.

The move comes in anticipation of the growing sales opportunities likely to follow China's expected entry into the WTO, and will also help Taiwanese companies frustrated by growing labour costs and stricter environmental standards in their own country.

According to the Taiwan Textile Federation, the industry's investment within Taiwan dropped to a 6-year low of NT$3.4 billion in the first half of 2001, compared with an investment of NT$9.6 billion for the whole of last year.

Most of the industry's investments in Taiwan go into the manmade fibre sector.