Chinese cotton prices are rising due to labor, real estate and demand. The world is spending more money on clothes and Chinese factories are behind in production, again. This movement in the demand curve, coupled with higher prices in production of cotton clothing AND the smallest stockpile of cotton in 15 years will cause the price of clothing at retailers like GAP, J.C. Penney and Wal-Mart to increase.
Chinese suppliers have to see if they can pass the increased cost to U.S. retailers. I don't think that will be too difficult seeing as how cotton suppliers are in a very good position. With demand surpassing supply and cotton stockpiles diminishing, the cotton suppliers should be able to fetch a fair price.