China's strong textile industry has created great business opportunities for overseas machinery manufacturers as domestic textile companies are banking on imported machines to ensure quality of their products.

"China has a huge domestic market where consumers paid more attention to the quality and complexity of the goods than before," said Jack Lee, vice general manager of Taiwan Minya Enterprise Co Ltd, which imports Italian Protti brand knit machines to China. "This has persuaded domestic textile companies to splurge on expensive imported machines."

Foreign countries will lift their import quota on Chinese textiles from 2005 according to their agreement following China's entry into the World Trade Organization. Stronger Chinese textile exports will also boost the country's demand for textile machinery, Lee added.

Since lee's company set up a Shanghai office a year ago, it has sold 200 machines worth US$100 million to domestic textile companies mainly in Zhejiang and Jiangsu provinces.

"It's a good start and we plan to open offices in Guangdong, Hebei and Inner Mongolia next year to expand our sales," he added.

China is the world's biggest textile manufacturer and exporter. Last year, it sold US$16 billion worth of textiles abroad, accounting for 11 percent of the world's total exports of garments.

More than 1,300 firms from 26 countries and regions are taking part at the four-day 10th International Exhibition on Textile Industry, which opened on December 10 in Shanghai.

On the first day, about 35,000 people visited the largest textile industry fair in China and deals worth US$19 million were signed.

"China is our biggest customer -- 19 percent of Italian textile machine exports goes to China," said Carlo Addis, vice chairman of Italian Association of Textile Machinery.

China is also the largest buyer of German textile machines, purchasing equipment valued at 736 million euro (US$883.2 million) last year, a 32 percent increase from 2001.

China's purchases of the equipment accounted for 20 percent of German textile machinery exports worldwide.

"We are expecting China to buy 10 percent more in value this year," according to Thomas Waldmann, managing director of Germany Textile Machinery Association.