The slowdown in production of cotton fabric continues in China. The recent difficulties facing fabric manufacturers detailed here have tightened margins, reduced profitability, and even threatened viability of many in the industry. After expanding by over 23% per year from 2004-2006, growth slowed to 16.5% in 2007, only to slow further to just 8.5% in the first four months of 2008 from the same period last year. This easing in 2008 is exacerbated by April growth only climbing 3.1% from year-ago levels, the third-slowest gain in over three years.