China's textile exports will rise more than 15 percent in 2007, enjoying strong growth despite quotas imposed by Western trade partners, the official Xinhua news agency said on Sunday, quoting a government planning agency.

Related readings: Textile industry forecast to have double-digit growth Growth of China's textile industry slows Shanghai Dragon denies takeover reports Textile to champion quality over quantity Canada debates textiles

But, with the yuan strengthening and production costs rising, the expansion would be less than that seen last year.

The industry's profits would also rise more than 15 percent this year, Xinhua quoted China's National Development and Reform Commission as forecasting.

Chinese firms exported $95.2 billion worth of clothing and $48.8 billion in textile products in 2006, notching up annual growth of 28.9 percent and 18.7 percent, respectively, despite rows with some important customers.

China's exports surged after the World Trade Organisation's global system of textile quotas ended at the start of 2005 as low wages and logistical advantages saw it grab market share.

But growth in shipments to the European Union and the United States slowed significantly after they slapped import curbs on Chinese textiles within months of the rule change.

Exports to countries without curbs made up some of the difference.

Pressures will mount on the sector as China's yuan currency grows stronger, and production costs are likely to be nudged up by shortages of cotton and labour, and stricter environmental protection rules, Xinhua said.