Jiangsu Province is the second largest yarn producer in China, producing 20.2 percent of all Chinese yarn output or 3,829,000 tons in 2006/07. This production level makes the province almost equal to that in Pakistan and makes developments within its textile sector have ramifications for all of the Chinese industry. Deteriorating profit margins appear to have brought the rapid expansion of Jiangsu's spinning industry to a halt.

While total August 2007 through February 2008 cumulative cotton yarn production in China has increased 10.6 percent, output in Jiangsu has declined .3 percent. Total production in the province reached 2,120,800 tons, dropping its percentage of total yarn output to 18.2 percent. Unusual winter storms that hit Jiangsu Province and the electricity shortages that followed impacted its February production.

Growth in China's total yarn production has slowed in early 2008 and is expected to further stagnate as the year progresses.