China may be the world's leading clothing exporter but it doesn't claim a lion's share of the profits, notes analyst China's textile industry has faced serious obstacles and disadvantages in international markets despite its position as the world's No 1 exporter, industry insiders lamented yesterday. Deng Hongbo , director of the mainland's World Trade Organisation Affairs Centre, said in Beijing that the mainland's textile industry had been 'confronted by an unsatisfactory environment in international trade, which manifests itself in increasingly fierce international competition and trade friction'. Mr Deng's centre is organising a WTO-China textiles forum in Beijing next week. Liu Yingkui , deputy director of Trade Point Beijing, a United Nations-sponsored trade information website, said the developed world was still in a dominant position despite its waning textile industries. 'Analysing the global production chain and trade in textiles and apparel products, I think the developed world still controls the core business and is in a dominant position to gain the fattest profits from the development of the industry,' Dr Liu said. 'The developing world, including China, has not shared much of the benefits from the development of the industry, because these nations are still at the low end of the global chain of textile production and trade, gaining little profit with their low value-added products, despite manufacturing and exporting great quantities of these products.' The law of the market suggested that those who controlled markets determined the development of the industry. He said 55 per cent of the global textile industry's profits went to brand owners, 25 per cent to traders and retailers and less than 10 per cent to manufacturers. And only 10 per cent of China's exports were branded products. He said the maximum profit margin for China's textile product manufacturers was less than 10 per cent, with many achieving only 5 per cent. The average price of Chinese textile products was US$2.34 apiece last year, while retail prices in developed markets ranged from several dozen to several hundred US dollars. Dr Liu said China was still suffering from discriminatory trade treatment despite the globalisation of the textile trade and the abolition of global quotas this year. Cao Xinyu , vice-president of the China Chamber of Commerce for the Import and Export of Textiles, said many manufacturers had ceased new investment due to the uncertainty surrounding the industry this year. Mr Cao said the just-concluded deal between China and the European Union over the so-called 'bra wars' dispute was the best result possible. 'The agreement has succeeded in minimising the negative impact of the row on Chinese enterprises,' he said.