IMPORT/EXPORT
Fewer clothes were imported from China this year than last year as manufacturers headed to lower-wage countries such as Vietnam, India and Bangladesh to do more of their production.
Still, China accounted for 35 percent of the apparel imported into the United States for the 12-month period ending Oct. 31. In past years, China has accounted for as much as 40 percent of all clothing brought into the country.
The U.S. Commerce Dept. reported that apparel goods coming from China were down nearly 7 percent in the one-year period to $28.35 billion.
As salaries are rising in Chinese factories, U.S. clothing companies are moving production to countries with lower wages. The most favored country for apparel making after China is now Vietnam, which has grown steadily over the years with more apparel factories coming online.
Apparel imports from Vietnam grew 3.7 percent in the one-year period ending Oct. 31, totaling $10.75 billion. That accounted for 13 percent of all apparel imported into the United States.
Vietnam is expected to continue to be a popular apparel-manufacturing center despite the fact that its goods won’t be subject to duty-free consideration now that the Trans-Pacific Partnership, a free-trade agreement that included Vietnam and the United States, is dead.
Still, Vietnam is popular among several U.S. clothing companies such as Columbia Sportswear.
Bangladesh is also growing in importance when it comes to apparel manufacturing. Big retailers such as H&M and Zara have consistently headed to this extremely low-wage country to have goods produced in big factories.
For the one-year period ending in October, Bangladesh sent $5.3 billion worth of clothing to the United States, making up about 6.5 percent of total apparel imports. That was about the same as the previous year.
India only exported $3.65 billion in apparel to the United States, but when factoring in fabric and other textiles the total jumped to $7.2 billion in goods.
Mexico, which for years was the second most popular source for apparel making for U.S. labels, has seen its share of production decline. For the 12 months ending Oct. 31, it sent $3.3 billion in apparel, a 7 percent drop over the previous year, making up 4 percent of all U.S. apparel imports.
With expertise in international trade and global commerce, let's dive into the intricacies of the import/export landscape highlighted in the article you provided.
The piece touches on several crucial concepts:
Apparel Import/Export Dynamics:
The article details a shift in apparel manufacturing from China to other countries due to rising wages in Chinese factories. This shift reflects the influence of labor costs on manufacturing location decisions.
China's Dominance & Decline:
China historically dominated apparel imports to the United States, accounting for a significant portion—up to 40%. However, this has dwindled to 35% due to manufacturers seeking lower-wage countries for production.
Rise of Alternative Manufacturing Hubs:
Vietnam emerges as a prominent alternative to China, witnessing steady growth in apparel exports to the U.S. despite the demise of the Trans-Pacific Partnership. Vietnam's appeal lies in its lower wages and an increasing number of apparel factories.
Bangladesh's Significance:
Bangladesh, with extremely low wages, attracts major retailers like H&M and Zara for apparel manufacturing, sustaining its importance in the global apparel supply chain.
India's Role and Textile Exports:
India's apparel exports to the U.S. amounted to $3.65 billion, but when considering textiles and fabrics, the total rises to $7.2 billion. This highlights India's diversified role in the broader textile industry.
Mexico's Decline:
Mexico, once a prominent source for U.S. apparel, has seen a decline in its share of production, sending $3.3 billion in apparel—a 7% drop over the previous year—making up 4% of all U.S. apparel imports.
The trends showcased in this article highlight the dynamic nature of global manufacturing, driven by shifting labor costs, trade agreements, and the quest for competitive advantages in the apparel industry.
FAQs
Chinese-made goods accounted for 35.1 percent of U.S. imports of apparel and accessories in 2022, down from 37.1 percent in 2021 and a peak of 44.2 percent in 2018.
Why does China produce so much clothes? ›
However, the availability of cheap labor is just one of many factors that have kept the "Made in China" label on so many products purchased by consumers around the world. It will take more than low labor costs for emerging economies to set up a business ecosystem that can compete with China's.
What are the conditions in China clothes factory? ›
Major decent work issues in the industry are: excessive overtime, forced labour, child labour, unsafe working conditions, and gender discrimination. More than 20 million workers, approximately 50% of which are rural migrant workers.
Is more than 97% of apparel sold in the US is made overseas according to the American apparel & Footwear Association? ›
According to the American Apparel and Footwear Association, the majority of garment production occurs outside of the U.S., with 97% of clothing worn by U.S. consumers made overseas. Many believe that these international factories are where we see a majority of negligence and mistreatment of garment workers.
What US companies does China own now? ›
The world's largest pork producer, Smithfield Foods, was acquired by China's Shuanghui International in 2013 from American owners for nearly $4.7 billion, making it one of the biggest purchase of an American company by a Chinese firm.
What country makes the most clothes for the US? ›
In 2021, the top partner countries from which United States Imports Textiles and Clothing include China, Vietnam, India, Bangladesh and Mexico.
What would happen if the US stopped trading with China? ›
As a result, if the United States and other countries were to stop trading with China, it would disrupt global supply chains and cause economic disruptions in many countries.
Is clothing made in China safe? ›
Consumers have been warned to think twice when buying a clothes with 'Made in China' label, as recent research showed they can contain dangerous chemicals.
Can clothes made in China be good quality? ›
"Made-in-China means lower quality."
False. There is no evidence that Chinese products are lesser quality than US-made products. During the industrial era, the bulk of textile manufacturing moved overseas for cheaper labor for the same quality production.
Is Shein from China or the USA? ›
Shein (/ˈʃiːɪn/ SHEE-In; styled as SHEIN; Chinese: 希音; pinyin: Xīyīn) is a fast fashion retailer. Founded in Nanjing, China, in October 2008 as ZZKKO by entrepreneur Chris Xu, Shein grew to become the world's largest fashion retailer as of 2022. The company is currently headquartered in Singapore.
Shein produces clothing in China to sell online in the United States, Europe and Asia excluding China. It does not own or operate any manufacturing facilities and instead works with around 5,400 third-party contract manufacturers, mainly in China.
Who is the owner of Shein? ›
Shein, Global Fashion Manufacturer, Will Go Public In 2024
The company is currently owned by Sky Xu, also known as Chris Xu in the International English media.
Which 4 countries does the United States import the most articles of clothing from? ›
Textiles and Apparel
| China | 50,141 | 39.3% |
| Vietnam | 14,577 | 11.4% |
| India | 7,680 | 6.0% |
| Bangladesh | 5,569 | 4.4% |
| Total | 127,650 | 100.0% |
|---|
6 more rows90% of garments sold in the US are made with cotton or polyester, cotton being a major section of the water-guzzling garment train. The plant requires large amounts of water and pesticides to grow successfully and at scale.
Why does the US import so much clothing? ›
Why does America Import Clothing? America is a powerful country, and although it is capable of producing apparel; China, Mexico, India, and other developing countries can produce the same at a cheaper rate. The cost of living in these countries is lower, and thus, it allows them to hire cheap labour.
What percentage of clothes are made in China? ›
Currently, China produces 65% of the world's clothes and is the world's largest manufacturer and exporter of textiles.
How much of our clothing comes from China? ›
In 2022, China accounted for over 43.6 percent of the world textile exports, followed by the European Union and India.
What percent of clothes does China make? ›
China produces 65% of the world's clothing, with a majority of these clothes being labeled as "fast fashion". The top ten competitors in the fast fashion market make up 29.13% of the whole fashion market in 2020.
How much of US manufacturing is in China? ›
In 2021, U.S. manufacturing imported 20.4 % of its intermediate goods/services, resulting in 12.4 % of the output being of foreign origin. The largest supply chain entity for U.S. manufacturing by country is itself (83.0 %) followed by Canada (3.1 %), China (1.8 %), and Mexico (1.5 %).
