Xiqiao, a famous textile cluster of Guangdong province has just implemented new policies favoring textile development. Local government of Xiqiao has taken out six million RMB subsidies to help textile companies upgrade their technology and broaden their financing channels. Xiqiao government has enacted a new policy concerning imported textile machinery VAT discount reward. Six million RMB would be used to subsidize and reward companies importing textile machinery. Xiqiao textile machinery companies have shown overwhelming enthusiasm upgrading their equipment upon the implementation of this policy. By the end of 2011, total weaving machines would supposed to be reaching up to forty thousand with imported weaving machines increasing up to seven thousand. Currently Xiqiao has thirty thousand weaving machines, 3500 thousand of which are imported.

Source: China Textile Leader