The prominent impact of the relocation of clothing processing links in China

Due to multiple policy and market factors such as the appreciation of the RMB, the reduction of export tax rebates, and the rise in labor and raw material prices, the profit margins of textile and clothing export enterprises have been severely squeezed since 2007. Most enterprises are on the edge of meager profits or losses, and the impact of the US subprime mortgage crisis is still ongoing. The sluggish economy in the US dollar zone has significantly suppressed demand for textile and clothing. Since the beginning of this year, the export performance of China's textile and clothing products to the United States has remained sluggish. Except for an increase in March due to the influence of the Spring Festival, the growth rate in other months has been below 2% or even negative

Industry insiders have stated that the export growth rate of textile yarns, fabrics, and products is significantly faster than that of clothing exports, reflecting the significant impact of the relocation of China's clothing processing links. A recent analysis report released by the General Administration of Customs stated that in recent years, countries such as India, Vietnam, Cambodia, and Bangladesh have regarded the textile and clothing industry as an important supporting industry with stronger labor cost advantages. China, especially Guangdong textile enterprises, are accelerating their relocation. Currently, more than 400 Chinese textile enterprises have invested in and established factories in Cambodia, and nearly 100 have also moved to Bangladesh.