China is the largest cotton yarn manufacturer in the world with an output of approximately 5500 mn kgs per year, with an average count 24s. After scrapping about 10 million spindles in the year 2000, there is a significant increase in number of new spindles, looms and knitting machines. However, the quality of domestic production of yarn is average, barring a few spinning mills. Particularly, the comber capacity is limited and it is estimated that demand for combed yarn will increase by at least two fold during the current year. It is also estimaed that China will be the top supplier of knitwear by the year 2010. Even though China is the largest manufacturer of cotton yarn, it is importing and will continue to import a sizeable quantity to meet the demand-supply gap of high quality yarn.
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