The impacts of the financial crisis had deprived Chinese textile industry of a large amount of profits. A large number of employees were laid off and the gloomy market demand had indeed made the bad situation even worse.
The decreased sales results had caught the attention of the government. From the second half of 2008, government had increased four times in total the export tax rebate rate, from 11 percent to 16 percent. This conduct of government had enabled the textile industry to regain its competitiveness in the market. Gradually, the textile industry started to get itself back on the right track.
Government played a vital role in dragging the textile industry out of the financial crisis. In 2009, the textile industry went through a series of structure adjustment and scope expansion under the support of the government. Government reinforced its investment in the textile industry to ensure its smooth recovery. The government also established a special fund which was designed to introduce advanced techniques to the further development of textile industry.
Moreover, the relevant textile companies conducted a series of reflections and questioned themselves: what made them so fragile under the attack of financial crisis. It was during this period of time that the textile underwent reorganization and re-construction. It began to dedicate to polishing their brands, developing new brands of excellent quality and affordable price. For instance, the MH Industry Co., Ltd shifts its focus to providing the customers with access to products of high quality and reasonable price.
Besides, it dawned on the textile industry that the cheap labor cost in China was not the permanent advantage for them to compete in the international market. Consequently, the textile industry spent a considerate amount of capital importing technical equipment from foreign countries. In 2009, the sales figure and growth rate of textile industry improved significantly.
The Chinese textile industry has grasped the opportunity for development in the new century. It has fully taken advantage of the optimized industry system and adopted various advanced technologies and management experience. In the same time, it encourages innovation and creativity. In addition, it pays equal attention to explore both domestic and international market. However, there are still problems waiting to be solved. For example, the technical investment is too insufficient to meet the demands of the consumers. The textile industry lacks professional talents and expertise. Unlike other textile industry in western countries, Chinese textile industry appears dull by comparison in term of integrating itself to fashion industry.
Nevertheless, the future lying ahead is nothing but bright and promising. You can refer to the mh-chine.com and find more relevant information.