Exports of the textile sector amounted to $44.4 billion in the third quarter this year, 27.2 percentage points higher than the April-June period, according to a recent report by the National Bureau of Statistics. In addition, the net profit of the industry from July to September was 24.3 billion yuan ($3.6 billion), up 15.3 percent from the same period of last year.

As the world's biggest supplier of clothes and shoes, China's textile industry accounts for more than 10 percent of the country's total exports and provides millions of jobs. But the bottom two thirds of manufacturers were caught in a financial tailspin last year as shopaholic Americans tightened their wallets.

Analysts believe the sector has left the worst behind, but it is less likely to see a return to torrid growth, as rising labor costs and a weaker U.S. dollar cast an ominous shadow over export prospects.

Wang Tiankai, Vice Chairman of China National Textile and Apparel Council, said it is necessary for the manufacturers to diversify into emerging markets like Southeast Asia and Latin America, and press ahead with higher-end products to gain a competitive edge.

FDI Gains Strength

China attracted $7.1 billion of foreign direct investment (FDI) in October, up 5.7 percent year on year, said Yao Jian, spokesman of MOFCOM, at a press briefing on November 16. This was the third consecutive monthly increase since this August, reversing a 10-month downward streak.

But the October expansion lagged the growth rate of 18.9 percent in September and 7 percent in August, said Yao.

Despite softer growth, the October figure bodes well for a remarkable improvement in confidence of foreign investors for the Chinese economy, said Chen Lu, a senior analyst with the Shanghai Haitong Securities Co. Ltd., in a recent report.

In addition, the investment resurge is a clear signal that the world economy is finding its feet, added Chen.

Stephen Green, chief economist with the Standard Chartered Bank in China, predicted that China's FDI this year will be comparable to that of 2008 and double FDI figures of 2007.

The number of newly approved overseas-funded enterprises in the first 10 months of this year totaled 18,163, down 20 percent from the same period of last year, according to the MOFCOM.

Sina Fares Well

Sina Corp., a major Internet portal provider, reported a net profit of $16.7 million in the third quarter, a leap from the $13.3 million of the second quarter. But the figure was still lower than $18.9 million in the same period of last year.

Total revenue reached $96.4 million from July to September, 66 percent of which came from the online advertising business.

Cao Guowei, CEO of Sina, attributed the profit to a rebound in the domestic advertising market amid the sustained economic recovery.

"Our strategy is to explore business opportunities by teaming up with other industry leaders," said Cao.

In its latest move, Sina's online property platform merged with the E-House (China) Holdings Ltd. to form an online and offline real estate information and consulting platform. The merger came after it scrapped its planned $1.7-billion purchase of Focus Media's outdoor advertising assets in late September, citing the deal's inability to receive approval from MOFCOM.

The China Real Estate Information Corp. venture raised $216 million with an initial public offering on the NASDAQ Market on October 16.

Finance Crosses Straits

The Chinese mainland has signed a long-anticipated memorandum of understanding (MOU) with Taiwan, allowing banks, securities and insurance firms to conduct business in each other's markets for the first time.

The agreement came seven months after the two signed a deal on the exchange of financial operations during their regular high-level negotiations on economic ties.

Under the MOU, the supervisory agencies of the mainland and Taiwan can dispatch officials to audit and oversee operations of financial institutions in each other's markets. The cooperation is expected to take effect in two months, according to a report by Xinhua News Agency.

In addition, the mainland and Taiwan have also agreed to exchange financial data needed for the approval of acquisitions, mergers and other activities.

Analysts believe the agreement is a milestone on the path of economic cooperation between the mainland and Taiwan, and is expected to pave the way for closer ties.