While many industries in China are bracing for new competition in their home market as a result of the expected entry into WTO, the textile sector is seen as one of the main beneficiaries.

Shan Shan Group Co, a major textile and clothing producer, is one of the companies eyeing new opportunities amid an easing of import quotas in Western markets.

"We have been planning for this for three years," Zheng Yonggang, Shan Shan's chairman and president, said in an interview on Wednesday."There will be real opportunities. We expect to see our exports triple over the next five years."

Exports accounted for about 15 percent of the group's 2.35billion yuan ($285 million) in total sales last year, Zheng said.

Profits will not match the growth in sales, but there would be a boost to earnings as well, Zheng said.

"Some companies will fall by the wayside as a result of the WTO agreement," Zheng said. "But for us this is a good deal."

Under the accord hammered out with the United States last month, US quotas will formally end in 2005 as mandated under a WTO-wide accord, though a special import "safeguard" system will be in place until January 2009.China still has to nail down a final agreement with other WTO members, but the big hurdles have been cleared and entry is expected next year.

"We realise the overall impact will be gradual," said Zheng, a 41-year-old entrepreneur who now heads a textile group with some 6,000 employees."But the US and Europe will be relaxing restrictions in the years ahead."Even a gradual dismantling of the quota regime is good news for China's long-suffering textile companies.

In Shanghai, a textile industry centre, clothing and textiles worth some $5 billion were exported last year and $1.8 billion of that total came under quotas.

Some textile stocks rose as much as 30 percent during the week of WTO negotiations with the US.

Shan Shan's listed subsidiary Ningbo Shan Shan also saw a modest rise in its share price, though the stock has since fallen back.

Shan Shan, which also uses the name FIRS Group, is a major producer of shirts, blouses and suits as well as other garments.