As a famous warp knitting and home textile town in China, Yangxunqiao town is the key warp knitting industry assembly in China. There are over 800 various textile enterprises among which over 280 have the corporate capacity involving spinning, weaving and processing, dyeing and finishing etc. A complete warp knitting industry chain has already been formed in the whole town . According to the statistic, the textile industry of Yangxunqiao town has hit the gross product RMB 14.314 billion Yuan accounting for 68% of the total output value, among which RMB 2.99 billion Yuan is for warp knitting and RMB 5.805 billion Yuan for home textile. Based on the strengthened industry, it has been the common desire for the local warp knitting enterprises to improve the competitive power of warp knitting and build Yangxunqiao into a Warp Knitting Industrial City. Located in the new subdistrict of Zhitanghu Lake, Yangxunqiao Warp Knitting Industrial City has the area of 520 mou, whose total investment reaches RMB 1.5 billion Yuan in the program. The Industrial City is divided into two parts, the production area and business area of warp knitting and home textile, the former with the area of 302 mou, 39 plots and construction area of 350,000 square meters and the latter with the area of 155 mou, 17 plots and construction area of 300,000 square meters. “At present46 enterprises have shown their interests in it, and the investment introducing and registration are on the way. It is expected that 10 warp knitting and home textile enterprises will be put into production at the end of this year.” some relevant official in the town government said. What will the Industrial City be? The vice sheriff of Yangxunqiao said, it will upgrade the key power of warp knitting industry, build a national warp knitting and home textile ‘silicon valley’ and introduce other high technological industries to realize the goal of being “an assembly zone of featured industry, model zone of modern industrial trade and key zone of mainstream economy” integrating production, trade and R&D. However, based on over 280 Medium and Small Enterprises and the industrial advantage of local warp knitting and home textile, make production base assembly to promote the business assembly and promote the development of tertiary industry. To accelerate the development, Yangxunqiao town has built a bonding company to offer finance guarantee of maximum of RMB 5 million Yuan. In addition, some incentive policies will also come along to encourage the enterprises to establish themselves in the industrial city and promote the development of warp knitting industry; some relevant business trainings are also carried out and enterprises are organized into group to participate the Textile Expo’ to offer a good environment of developing warp knitting industry.