As Shaoxing's textile companies continue to be hit by the slump in orders from the West, there are other markets with great potential, Shou says.

From January to July, 465 Shaoxing textile companies exported products worth $136 million to Russia, a rise of 25.9 percent year-on-year.

"Russia coming to the fore as the traditional European markets fail us comes as a surprise," Shou says. "With Russia entering the World Trade Organization, that growth will accelerate."

Wei Changjun, president of Shaoxing Mina Textile, voices similar optimism, saying Russia holds great potential for Chinese textile companies. The company registered a branch in Russia this year, and exports to the country totaled $3 million in the first half of the year.

"In the past, most textile products in the Russian markets were from South Korea or Turkey, which they think are of better quality. But most of the Korean and Turkish products themselves come from Shaoxing, so we are connecting with the Russian market directly," Wei says.

Shou says China Textile City plans to set up a marketplace in Russia for companies in Shaoxing to do business there.

"The marketplace will be in the Greenwood business area of Moscow, and we will have a whole building of our own. Five companies are already there, and more should follow over the coming year."

Shou says that as Western recovery continues to be elusive, it is time to turn to emerging markets, with better products and services.

To encourage companies to innovate and be more creative in developing fabrics, Shaoxing county has set up a special fund that will reward enterprises and individuals. Preferential rent and tax policies are also being offered to attract companies to focus on creativity.

"Product innovation is the key to survival for companies in this industry, and it is our duty to lead them on that path," says He, Shaoxing county's Party chief.

Seventy-nine textile and garment design research and development institutions and designers' studios have already joined Shaoxing's Creative Industry Base of China Textile City, which aims to promote innovation, he says, voicing confidence about the future.

"Shaoxing's textile products will one day be famous for their innovation and creativity. Many world-class brands will be born here."