State-owned textile mills in Liaoning province, one of the oldest industrial bases in northeast China, saw a total profit of 21 million yuan (2,530,120 US dollars) last year, putting an end to the nine-year deficit. "Though it is not a large sum of money, it does bring us confidence and hope that the State-owned enterprises will have a bright future because of their reform," said Zhan Huizhen, chief director of the textile industry management office of the province. After years of deficit, China's textile industry, along with the coal industry, became a burden to Liaoning's economic development.

In 1998, under the central government's general plan, Liaoning started reform of the industry. So far, the province has discarded 439,000 outdated textile spindles, optimized the industrial structure, and strengthened the competitiveness. Zhan believes this year's profit is only the beginning. The demand of the domestic and international markets is expected to rise this year, which will offer a special opportunity for Liaoning textile producers, especially those in the fields of garments and related materials, Zhan said.