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Textile quota set by USA and EU and the rising production costs have forced the textile units in Zhejiang province to relocate their units in the areas like Southeast Asia, Africa, South America and other developing countries of southern hemisphere.

Lower labour cost and availability of rich resources are the driving force behind the flourishing markets in southern hemisphere, which has attracted the textile enterprises of Zhejiang province.

Meanwhile, Chinese government is supporting the textile enterprises to set up their factories overseas.