Since 2000 Prato's domestic textile sector has contracted in the face of international competition. From the 1990s a large Chinese community has emerged, and since 2000 the number of Chinese clothing enterprises has increased rapidly. In recent years tensions between the Italian and Chinese communities have increased, and police investigations have risen, in part due to perceptions of unfair Chinese competition and illegality. This paper examines these tensions, their roots in differing economic practices, regulatory frameworks, and cultural values, and considers the strategies of public authorities as they seek to improve economic performance, social integration, and political stability.
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