In apparel categories, China's exports have grown by 1,000 per cent and if past performance is any indication in other categories, which were taken off quota under the World Trade Organisation agreement of 1995, China is expected to dominate, a study by Associated Chamber of Commerce and Industry said.
According to World Trade Organisation, within two years China could control 50 per cent of the world textile market.
While China increased its exports, the market share of 50 supplying countries has fallen from 90 per cent to 28 per cent.
The biggest losers in the face of Chinese aggression were Bangladesh, Mexico, the nations of the Caribbean and Philippines
while impact on Turkey, Pakistan and India has been marginal.
"The establishment of free trade areas has still not appeared to have a significant impact on competitiveness vis-à-vis China. Preferential trading partners like Mexico and nations of the Carribean have not performed any better than other suppliers," Assocham president M K Sanghi said.
China is expected to capture apparel and textile market in US and European Union countries, the study said.
In the post-quota regime the number of jobs that would be lost in the textile sector will be 275,000.
In EU the textile industry employed 2.7 million people in 2003 and had a turnover of more than $250 billion but China's exports to the member countries almost doubled between 2001 and 2003.
