Manufacturers and workshops appeared rather late in China compared to Persia, although there definitely must have been a domestic handicraft. Large pieces appeared in the late 17th and beginning 18th century and were (in limited editions) made for temples or palaces.
Around 1900 more big sizes were produced on request of the West. But slowly by slowly, the mass production would put an end to the refinement and subtlety. Fifty years later one can say that the Chinese rug production had completely lost its identity. It had no message to deliver, only technique.
Contemporary production is experiencing new possibilities and mostly follows the expectations of the western market.