Rare size Early 20th century Vase Design Khotan Rug. Khotan Rugs were produced in the city of Khotan which is Located in Eastern Turkestan. Khotan produced fine rugs in the 18th and 19th centuries. Catering to a wide variety of tastes Khotan rugs straddle Chinese and western Oriental elements in their design. The palette of colors range from the more soft and decorative to more bold and rich. Many will have stronger and more geometric patterns or drawings. Khotan rugs are versatile and could easily be situated in both modern contemporary or traditional interior decor settings. Khotan Rugs have been coveted by the top interior decorators for the past few years. Almost every interior design magazine that showcases high-end design projects will feature at least one, if not several Khotan Rugs.