Since the fourth quarter of last year, affected by the global economic recession, textile industry has concentrated on serious problems such as reduced customer orders, poor market sales and backlog of stock. Output, export volume and growth rate of fixed assets investment have declined to varying degrees. The operation of enterprises is facing severe tests. As of November 2008, the deficit of Enterprises above Designated Size reached 20.44%, up 3.5 percentage points from the same period in 2007.

Since 2009, there has been some signs of improvement in the domestic macro-economy. The textile industry has also shown signs of improvement and rebound. Its operating rate has increased, its inventory has decreased, and its profitability has also improved significantly compared with the fourth quarter of 2008. However, the domestic and international economic situation is still grim, the demand for foreign enterprises is low, the export volume of the small and medium enterprises has been reduced by 5.2%, and on the one hand, consumer confidence has continued to decline, and in December 2008, it has dropped to 87.3 and five consecutive years have dropped. On the other hand, clothing prices have dropped sharply. In January, the clothing prices in Guangdong have dropped 4.6%, and the domestic market has continued to decline.

Editor in chief: Xu Qiyun