Abstract: The yarn-dyed weaving industry is a traditional competitive sector of China’s textile industry.

Though the industry is developing smoothly, it faces many problems such as surplus capacity, duplication of products and disordered competition. As the result, numerous yarn-dyed weaving mills in China vary greatly in terms of product R&D ability and development of production technology and there is certain gap between these enterprises and their counterparts in developed economies. Based on visiting Intertextile Shanghai Apparel Fabrics - Autumn Edition 2015, the paper analyzed in details the current situation and developing trend of China’s yarn-dyed weaving industry and consequently it pointed out the main path for optimizing and developing the industry and finally it proposed some measures for product innovation.

Key words: yarn-dyed weaving industry; production technology; product development