The call came in a circular from the National Development and Reform Commission and nine other central government departments, Xinhua news agency reported.

It said the restructuring aims to make the industry, which currently only spends 0.3 percent of its revenue on research and development and imports most of its sophisticated equipment, more innovative.

Insufficient supplies of cotton, chemical fibers and other raw materials have become a major bottleneck. The circular calls for the use of linen, bamboo and other alternative materials as well as recycled fibers.

It also urges efforts to promote clean production and cut energy consumption, since the textile industry has become a major consumer of water and lags other industries in the use of treated water.

The departments also urged more developed coastal regions to focus on brand building, marketing, research and development and other high value-added businesses, allowing labor-intensive work to move to central and western areas.