“Chinese textile sector experiences export declines, factory closures due to US tariffs”, 18 August 2025

China’s apparel and fashion sector has taken a hit thanks to the uncertainty and disruption caused by the US tariffs, leading to factory closures, job losses and a decline in exports. Apparel factories are sacking employees, shortening shifts, and preferring temporary staff to cope with financial challenges thrown by the tariffs.

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In May 2025, the value of apparel imports from China to the US fell to the lowest in past 22 years as American retailers moved to Vietnam, Bangladesh, India, and other countries in the backdrop of high tariffs. "The sharp decline in US apparel imports from China in May 2025 was anything but natural," said Sheng Lu, professor of fashion and apparel studies at the University of Delaware.

..A cluster of villages in Guangzhou, which houses about 5,000 apparel workshops and factories, is called ‘Shein villages' as they are a key part of Shein’s supply chain…

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From being the largest apparel supplier a few years ago, China has seen the lowest-ever exports—just 9.9 percent in May this year. Apparel firms have been steadily restructuring their sourcing for the US market, with mainland Chinese firms’ share of US imports of apparel falling to 21.0 percent in the past 12 months from 33.8 percent in 2017.

…China has a poor labour protection mechanism, which leads to the exploitation of small workers. They work without rest since they are paid for the amount of work they do, said Li Qiang, the founder of NGO China Labor Watch…

he textile manufacturing industry has ceased to be the engine of China’s economy, causing the Beijing government to ignore the sector even when it is struggling to survive in the trade war