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Hangzhou: The government of Hangzhou City proposed to allocate some RMB20 million in its budget each year for the promotion and development of its silk industry. Official sources said here on December 05.

The fund aims to promote the use of silk in women's apparel, home textiles as well as handcrafts in order to widen the spectrum of silk products.

Currently, there are more than 300 large-scale silk companies and 2,400 apparel companies in Hangzhou. In 2004, some RMB17 billion of sales income was generated from the apparel industry.