China launches three-year stimulus plan

Chinese textile manufacturing has slowed, and unemployment in China has grown, leading the China State Council to announce a three-year plan to assist the ailing textile sector. The Council announced its fifth export tax rebate since August 2008, urged producers to explore mergers and acquisitions, will assist with reduced energy consumption and greater efficiency, and set production growth targets for large companies of 10 percent over the next year. The government also wants exports increased by 8 percent annually. According to the most recent U.S. government figures, imports of Chinese textiles and apparel declined by 7.1 percent in the first two months of 2009.