With an aim to cool the overheated textile economy in China, a tighter control over new investments in the industry will be imposed, a Chinese official from the National Development and Reform Commission said.

According to the official, manufacturers planning to invest in textile production in China will have to meet higher standards on the environmental compliance in factory operations. They may also be restricted with the type of textile product they make.

China's textile production capacity has increased to 7.5 million spindles in 2005 from 3.4 million spindles in 2000, which has intensified the domestic competition.