The article discusses how industrial clusters in the textile industry can improve by following the national value chain theory. It compares this theory to the global value chain theory and analyzes how capital and equipment affect technological advancements in these clusters. The study focuses on China's textile clusters and shows that before the 1990s, they followed the national value chain approach. By upgrading, employees have better working conditions, and industry transfers create more job opportunities, benefiting both the economy and society.