China and the EU occupied 40% and 29% of world textile and apparel (T&A) exports respectively in 2010. The high volumes from China are mostly medium to low end products while the EU dominates the high end textiles and clothing market. Despite its strength in manufacturing, China imported USD 29.5 billion T&A products in 2010. Growth of the Chinese textile and apparel market will be driven by increase of disposable income, new applications of textiles and a fast growing online fashion market. It is innovative design, quality and application of the latest technologies that will give European SMEs the advantage when entering the Chinese market.