In Xi'an, on my way to the Terracotta Warriors, our tour group stopped at a silk museum and witnessed the process of how silk was made on the ever-famous Silk Road. All I have to say is that it's amazing how something so beautiful can be made out of some of the most grotesque creatures in the world. See picture below for futher clarification.
Astoundingly, one cocoon from a silk worm can yield an entire meter of silk. After stretching about 200-300 layers on top of each other, the main part of the silk is formed. There's some other process for the shiny texture, but I will have to get back to you on that after more research.
Something exciting? The silk museum had a special custom made Avatar bedset! Although I am pretty sure they were featuring Avatar: The Last Airbender. The price: 1600 yuan for a double bed. Add 300 yuan for each increase in size.