Why did local cocoon production in Zhejiang decline around the year 2000?

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Around the year 2000, local cocoon production in Zhejiang began to decline primarily due to two economic factors: rising labor costs and lower market prices for raw silk.1

While the province has a long and storied history of sericulture—particularly in the Lake Tai plain—these shifting economic conditions made the traditional practice less viable for producers at that time.1