Cost rises of labor and raw materials have pushed China’s textile industry to become more diversified, Karin Malmstrom, China director of Cotton Council International, the export promotion unit of the National Cotton Council of America, said during a promotion campaign on Friday.

“We have noticed some changes in the industry’s supply chain in China, as more and more textile companies are planning to move their production outside of the country,” Malmstrom said.

The Chinese textile market has become more stratified, showing strong growth for sales of the high-end products while sales of low-end products are being squeezed, according to Malmstrom .

“China’s emerging middle class prefer good quality cotton products, which makes it a big market for high-end products,” Malmstrom said, citing a recent survey by the council.