Cashmere material is a kind of rare resource, so that Cashmere industry is actually resource dependent industry. The naturally limit resource of raw cashmere materials greatly restricted the development of cashmere industry. Cashmere product is an export-oriented export product, and the international market demand of cashmere products is rising. Strong demand and limited supply is the market trend, the price is the ultimate pull power and decision factors.

In 2004, the Chinese government abolished the export tax rebate policy of cashmere raw material, which is intended to encourage the export of cashmere products with higher added value. National statistics show that， in 1985, Chinese exports of raw cashmere materials was up to 1649 tons, cashmere sweater about 2.5 million pieces, cashmere sweater domestic sales is less than 300,000 pieces; by 2003, the raw cashmere materials was up to 4,370 tons, cashmere sweater 9.6 million pieces, cashmere sweater domestic sales rose to 7,000,000 pieces.

Due to the rising export quantity of Cashmere products, more raw cashmere material is consumed by domestic cashmere product manufacturers, so that the export of dehaired cashmere yarn and other cashmere raw materials will be reduced. The effect of cashmere products prices on the international market cashmere industry will be more obviously.