Faced with the problems of rising labor and raw material costs, Chinese textile companies are adopting various strategies to move production away from China. Africa is a favored location. Another way out for them is to continue producing in China but go into premium value added products.

Investments from China are welcome in African countries. Morocco, for one, is scouting for Chinese capital and technology. Chinese garment producers can look to gain better access to European, African and other markets if they set up factories in Morocco. They can take advantage of the country's strategic position at the crossroads of the main trade routes linking Africa and Europe, as well as its free trade agreements with the United States, the EU, Turkey, Jordan, Tunisia and West Africa.

Some companies have opted to stay back in China. Over the years, China has transformed from manufacturing cheap garments to a major supplier for international brands, so being in the country also means being close to the most dynamic market. The fast changing consumer tastes in China means brands can keep innovating by creating new designs and new functions

The momentum of China's textile industry has slowed down significantly since 2011. From 2000 to 2010, the average growth was 18.8 per cent and has dropped to 12 per cent since then. Moreover, the price of high quality cotton in China is about 30 per cent more than the international level, which resulted in fiber processing dropping by 26 per cent last year.