How China is Facing the Challenges Facing Garment Industry Exports

South China’s Guangdong province is one of the country’s biggest apparel makers, with apparel industry revenue accounting for about a fifth of the national total in 2021.

Brother Plush, based in Dongguan City, started making clothes in 2014 and exports most of its products. However, COVID-induced disruptions in the supply chain have reduced its customer base.

“One of the reasons is that my foreign clients don’t make a lot of money anymore,” said the owner of Brother Plush. “The clothing industry itself is not very profitable. Foreign companies mainly depend on the exchange rate difference to make money. But now the logistics costs are too high. After the pandemic , shipping prices have gone up a lot, as has air freight, so they can’t really make money.”

Foreign trade orders and the workforce have halved from pre-pandemic levels, he said, adding that they have only 50 employees now.

Brother Plush isn’t the only one to suffer. The Guangdong Garment and Garment Industry Association said spring is the peak season for garment and textile exports, but that hasn’t happened this year due to new epidemics. of coronavirus in the province.

Guangdong’s apparel and accessories exports in the first quarter of 2022 reached about $6.3 billion, down 2.3 percent from a year earlier.

Central and local governments and business associations have developed a series of policies and measures to ensure international trade during the pandemic in this sector.

“Our association and other organizations have jointly launched efforts such as the Digital Collaborative Innovation Center and Guangdong Fashion Week, which provide business collaboration opportunities and a display platform,” said Guan Yong, vice president of the Guangdong Garment and Garment Industry Association. , told CGTN.

Meanwhile, the Guangdong provincial government has invested more than 3 billion yuan ($44 million) to stabilize the fundamentals of the local economy, he said.

Guan also said companies need to ensure product quality and leverage digital marketing to improve business with overseas customers during the pandemic.

He expressed confidence in Guangdong’s garment industry for the long term, saying that the implementation of the national “dual circulation” strategy will create more international opportunities.

Driven by Chinese government policies aimed at stabilizing the economy, stimulating consumption and supporting enterprises, the economic advantages of China’s garment industry have continued to improve, the National Association said on Friday. clothing from China.

China’s apparel industry enjoys a solid foundation of modern industrial chain and very strong market advantages, he said, adding that it is necessary to cope with the difficulties while improving the core competitiveness to ensure the recovery of the industry as soon as possible.

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