However, in the first quarter textile exports declined 15.6 percent to US$12.02 billion, and garment exports fell five percent to US$22.05 billion.

To cushion the blow from demand contraction, the government raised the export rebate for textile and garment items to 16 percent, starting from April 1.

CNTAC spokesman Sun Weibin said higher export rebates would help restore confidence in the industry and sustain steady growth.

Sun noted the industry must try to explore the domestic market while maintaining exports.

Light industry

The light industry posted recovery this year, buoyed by stimulus plans and the subsidy plan for farmers' to purchase home appliances.

Industrial output of the sector showed a 7.6 percent year-on-year growth in the first two months. It was 3.8 percentage points higher than the whole industry.

The first quarter saw an 8.5 percent drop in exports of furniture and units, 13.8 percent drop in toys, 16.5 percent drop in plastic products and 14.9 percent drop in colored TV sets.

The government decided to raise export rebates to 17 percent for colored TV sets, 13 percent for glass products and 11 percent for plastic products.

Chen Shineng, honorary president of China National Light Industry Council, urged enterprises to explore new markets such as the Middle East, Russia, Southeast Asia and South America, while maintaining shares in the US, Europe and Japan.

They should rely on domestic market and develop products for new rural construction, healthcare, education and post-quake reconstruction, he said.

The financial crisis was a test for the country's light industry, he added, urging technology improvement and innovation.

(Xinhua News Agency April 16, 2009)