Festival 'end of the line' for some plants

Nearly 100 manufacturing businesses along the coast failed to re-open as Spring Festival drew to a close on Tuesday, underscoring the weakness in global market demand and adding pressure on the world's second-largest economy to upgrade its export sector.

State broadcaster China National Radio on Monday reported that some 100 factories that made garments, furniture and daily necessities remained closed or suspended, the victims of declining foreign orders and rising operating costs. The factories are in Wenzhou, Zhejiang province and Dongguan, Guangdong province. Both provinces are part of China's traditional industrial bases.

"Market demand has shrunk dramatically in both domestic and overseas markets, which has led to the ongoing closure of factories in Wenzhou," said Zheng Chen'ai, chairman of the Wenzhou Chamber of Clothing Commerce.