Indeed, there is some evidence the government's stimulus package is producing results. Investment of cotton textile industry shows recovery progress and production remains stable.

The growth rate of output on the rise

China's cotton textile industry saw a slight increase in the output in the first five months this year, according to data collected from statistics-worthy Chinese textile enterprises surveyed by National Bureau of Statistics of China. Looking further, from January to May, yarn output of the industry reached 8.7893 million tons, up 9.02 per cent from the previous year's period; fabric 20.663 billion metres, down 0.86% year-on-year. 

Investment Rises Sharply

By the end of May, the accumulated fixed-assets investment in China's cotton textile industry was up 4.13% to RMB 24.834 billion year-on-year.

Export continues to fall

Goods delivered for cotton textiles and cotton garments exports slumped 12.51 per cent to $23.707 billion in the first five months from the year-earlier period. Looking further, from January to May, cotton textiles exports plummeted 17.33 per cent to $6.932 billion; cotton garments exports plummeted 10.34 per cent to $16.775 billion.

From January to May, accumulated cotton yarn exports plummeted 21.2 per cent to 202,200 tons; accumulated cotton fabric exports plummeted 11.72 per cent to 2.403 billion metres.

Top five markets suffered negative growth

China export figures released by the customs show that China's cotton textile exports to the top five markets all suffered negative growth in 2009.

EU: Cotton textile exports to EU grew rapidly since the ending quotas for textiles. However, under the shadow of the global economic downturn, China's exports to EU fell since Sep. 2009.  

U.S.: Cotton textile exports to US continue to dip due to its dismal market and consumption shrinking.

Japan: Cotton textile exports to Japan stayed in low level in last year and the growth turns negative in this year.

ASEAN: Amid all the gloom, there's a silver lining. Cotton textile exports to ASEAN reached its 2009 peak in April.

China HK: From January to May, accumulated cotton yarn exports to Hongkong plummeted 25.61 per cent to $1.57 billion