As a livelihood industry and traditional pillar industry of the national economy, textile industry enjoys strong competitive advantage in international market. Accelerating the relocation and upgrading of textile industry will lay a solid basis for turning China from a big textile producer to a textile power. Based on systematic analysis on the relocation of textile industry and the practical conditions of the industry, the article put forward a hierarchical model to illustrate the patterns of industry relocation and innovation from individual enterprises to the entire textile chain, which includes from the bottom to top the technological innovation of enterprises, the system innovation of industrial parks and the integrated innovation of industry chain. Therefore, the study has certain practical significance for promoting the transformation and upgrading of Chinese textile industry.