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.