Gao Yong reckons that the volume in trade of China's textiles is around 100 billion yuan. The 11th article of the "Textile Product Export Management Law", passed by MOFCOM last September, stipulates that U.S. and European exports occupy 70 percent of China's total exports.

"That's the problem. It's clear that the most important data has to do with exports to the U.S. and Europe," one committee member involved in the investigation tells us. "Even after the quota system expires, the government will still be consulting the export figures. Shrewd businesses realize this."

According to that source, the main motivation for false reporting is preparation for the post-quota era. "Whether or not the quota conference continues, businesses still need licenses, and this is directly tied to performance. Having good performance only has advantages." At the same time, the source says that the basic source for recent falsification is the "Textile Product Export Management Law".