Since the fourth quarter of 2007, the textile industry showed a growth rate of fixed asset investment gradually declining trend. 2008 January to November, China’s textile industry for more than five million fixed-asset investment growth rate year-on-year decline of 22.2 percentage points.

Ministry of Information Industry and January 5 news, since the fourth quarter of 2007 has been slowed by external demand, the appreciation of the renminbi, rise in the cost elements of a combination of factors such as the impact of production and management of textile enterprises had greater difficulties, the industry is facing tremendous pressure of economic operation , confidence in the development of the industry is facing severe challenges, the textile industry showed a growth rate of fixed asset investment gradually declining trend.

2008 January to November, China’s textile industry for more than five million of investment in fixed assets actually completed 247.23 billion yuan, up only 8.8 percent growth rate over the same period in 2007 fell sharply by 22.2 percentage points; plans to invest 537.8 billion yuan, increased by only 2.2 % year-on-year growth rate down 16.8 percentage points; the whole industry of new projects 5647 than the same period in 2007 to reduce the 370. The textile industry continued to decline in investment in fixed assets, on the one hand reflects the textile industry after a few years ago after the rapid growth of investment, and gradually return to rational investment; on the other hand, the financial crisis led to the shrinkage of the consumer market, the impact of the textile enterprises of the late development of textile industry confidence.

Sub-sectors, the 2008 January-November, wool textile industry actually completed investment in fixed assets 8.4 billion, year-on-year growth rate increased 28 percentage points, the growth rate of investment in other industries showed a decline trend, the cotton spinning industry, silk industry, the actual completion of fixed assets investment in the same period last year decreased by 5.2% and 0.8% respectively over the same period in 2007 dropped 37 percentage points and 38.2 percentage points; investment in the apparel industry grew 22.4 percent, 18.2 percentage points year-on-year decline; knitting industry investment growth by 1.1% year-on-year decline a 44.5 percentage points; chemical fiber industry rose 11.4 percent, 13.2 percentage points year-on-year fall; textile machinery industry grew 13.2 percent, up sharply down 56.6 percentage points.

Sub-region, the central and western regions textile industry significantly speeding up the investment in fixed assets. 2008 January-November, the eastern part of textile enterprises investment in fixed assets over the same period in 2007 fell 2.3 percent, while the central and western areas of investment growth rate reached 32 percent, respectively, and 32.6 percent. The eastern region as a result of investment in fixed assets continued to decline in the eastern part of the textile industry accounted for the proportion of investment in fixed assets decreased significantly, by 2007 the proportion of January to November dropped to 68 percent of the 2008 January-November of 61.1 percent, while the central and western the region’s share of investment proportion increased 6.9 percent. The central and western regions of fixed assets investment in the textile industry showed growth, on the one hand shows that the eastern part of textile enterprises in the face of the rising cost of resources and other elements under pressure to speed up the transfer to the pace of the Midwest; on the other hand, central China, the western development policy guidance and to undertake the transformation of manufacturing industry with a better investment environment. Midwest textile industry has gradually increased the proportion of fixed-asset investment is conducive to China’s textile industry, further optimize the industrial layout, and lead the economic development of the central and western regions.

With the financial crisis spread and expanded in 2009 to develop the textile industry of the external environment will be more severe, but with the national policy of expanding domestic demand effect of the show, the textile industry in economic operation are expected to bottom out in the second half of 2009, confidence in the development of the industry will also gradually be restored, thereby stimulating investment in fixed assets back to a reasonable level of growth.