Chinese companies are proactively moving toward automation and smart production through technological innovation. They are nurturing indigenous brands to move up the value chain. They are expanding their global footprint, working on their design abilities and strengthening their quick response capabilities. Apart from China, they have production bases in places like Vietnam, Bangladesh, Myanmar and Cambodia.

The US tariff action against China has increased American companies’ sourcing cost. But despite lingering tariff issues, China will remain a dominant textile and apparel supplier for the US market in the foreseeable future, because China does not have a strong competitor in the variety of products it can make. Although facing uncertainties over US-China trade tensions, most US companies are still looking for cooperation opportunities with Chinese businesses. As companies are moving sourcing orders to Bangladesh, Vietnam and India, the average price of US apparel imports from these main alternatives to China have all gone up by more than 20 per cent in the first five months of 2019 year on year.

In 2018 China processed 54.6 million tons of fibers, accounting for half of the world’s total, and its exports of textile and apparel were 36 per cent of the world’s total.