Amid trade tensions with the US, China remains a reliable supplier to global fashion brands
NEW YORK - Despite potential supply chain disruptions due to Sino-U.S. trade tensions, China's textile and apparel industry remains the most reliable supplier to global fashion brands thanks to its high efficiency, research and development capabilities, and mature transportation and logistics services.
That was a key message shared by industry insiders at the 20th China Textile and Apparel Trade Fair held at the Javits Center in New York in late July.
The exhibition was held concurrently with Home Textiles Sourcing, Apparel Sourcing USA, and Texworld USA. More than 500 Chinese apparel, fabric and textile companies and 300 companies from 16 countries and regions participated.
Unparalleled production capacity
Xu Yingxin, vice president of the China National Textile and Apparel Council (CNTAC), recalled that when the China-themed trade show debuted at Pier 92 along the Hudson River in the United States in June 2000, there were only 192 Chinese exhibitors. .
In the past 20 years, China has established the most complete industrial value chain in the field of textile and clothing. Chinese companies now cover raw material supply, design and development, weaving, dyeing and finishing, garment manufacturing, and retail operations.
"That's one of the great strengths of the Chinese industry and part of the reason why China is the largest supplier, and we think China will continue to be the largest supplier," said Julia K Hughes, president of the USFIA. . Hughes) said.
Statistics from the China National Textile and Apparel Industry Association show that in 2018, China's fiber processing volume was 54.6 million tons, accounting for half of the global total; textile and apparel exports were 276.73 billion US dollars, accounting for 36% of the global total.
"In the foreseeable future, no other country or region in the world can match the huge production capacity of China's textile and apparel industry." The sixth annual fashion industry benchmarking research report was written by Lu Sheng, an associate professor in the Department of Fashion and Apparel. Research conducted by the University of Delaware in partnership with USFIA.
"Given China's unparalleled chemical fiber production, low raw material costs, good talent and technology resources, and one of the most dynamic and largest domestic markets, there is no problem for China's textile and garment industry to remain competitive for at least a decade." China Li Bo, deputy director of the Textile Information Center, said.
Move up the value chain
Chinese textile manufacturers are "actively" moving towards automation and smart production through technological innovation, and cultivating their own brands to "move up the value chain".
Hughes said the ongoing trade dispute between the U.S. and China is "actually pushing Chinese manufacturers upscale" and "shifting production to products that don't need to be made in China."
"In the long run, this will actually make China more competitive," she added.
expand global footprint
Chinese textile and garment enterprises are also constantly expanding markets in Southeast Asia, Africa, and the Americas to seize new market opportunities and reduce risks.
As has happened in advanced economies, "it is a natural trend for China to move labor-intensive enterprises abroad and retain the high value-added or technology parts."
According to statistics from the China National Textile and Apparel Industry Association, in 2018, the investment of Chinese textile and garment enterprises in the United States increased by 20.7%, and the cumulative investment in the United States from 2015 to 2018 was 214 million US dollars.
"China is here to stay"
A recent industry survey found that the tariff war with the U.S. will not shake China's position as a major supplier of textiles and apparel to the U.S. market, with only 6.7 percent of respondents expecting to significantly reduce purchases from China in the next two years.
Mark Engebretson, executive vice president of global operations at Vince, said that the American fashion brand Vince focuses on silk and cashmere products. Due to supply chain, skills and many other reasons, it is difficult to source outside of China. Recently, he was interviewed by Xinhua News Agency.
Vince works with only a few suppliers in China, which makes Vince highly dependent on its Chinese suppliers.
"China isn't gone. It's here to stay," Engelbreysen said.
"Now, we only offer base prices to American customers and will not bear any additional costs," Zhang Wei, manager of China's Tongxiang Yuhang Fur Products Co., told Xinhua at the Texas International Textile Show in the United States.
"U.S. importers have no choice but to bear most of the cost because only China has such a complete fur industry value chain," he said.
Nicolas Becerra, director of sourcing/fabrics and new resource development at Weissman, which makes ballet costumes and other garments, said Shaoxing, in eastern China's Zhejiang province, "has "nowhere to beat" when it comes to "product quality, price" , service and flexibility. "
"If tariffs go up, we're going to have to raise our prices, and so is every one of our competitors. Consumers are going to have to pay more," Becerra said.
