As an important traditional industry in national economy, when confronted various conflicts and problems, textile industry of our country adhered to the developing line to be upgraded and got good achievements. In the three years since we entered into WTO, a great changes had happened in textile industry, which was due to such three factors as mainly relying on domestic demands, marketing reform, opening up to the outside world.    

    According to statistics, sale increase in textile industry of our country was mainly relying on domestic market, which indicated that the fast development of China were beneficial from domestic demands. The motive force of textile industry was development of national economy and the textile industry was the result of domestic consumption. Actually the market reform of China’s textile industry was earliest and most successful.    

    Firstly, control over price of textile industry was relaxed in the earliest period, from products to intermediate products and production materials. Market allocation resources played a foundation function so that the non-state economy could develop so fast. Secondly, it was the regional distribution, the industry assembled in the area where the market condition and allocation resources were good, forming textile clothing industry zone at southeast coastal area and industrial economic textile zone from Shandong to Guangdong, around Bohai Sea, Yangtse River Delta and Pearl River Delta.    

    One prerequisite of fast and sustain development of textile industry of China was further opening up and internationalisation, and China's development created business opportunities for the world. The share in export growth by foreign-funded enterprise was quite big, according to customs statistics in 2004, three kinds of enterprises with foreign investment: Sino-foreign joint venture, contractual joint venture were US$ 33.5 billion, accounting for 34.4%, which indicated that investment, technology, brand and management we introduced enhanced the vigour of enterprises.