Unprecedented numbers of us fashion companies shift away from China as the primary supplier, reflecting escalating diplomatic uncertainty and worries over forced labour.
According to a recent survey conducted by the US Fashion Industry Association and Sheng Lu, an associate professor of fashion and apparel studies at the University of Delaware, approximately 61 per cent of apparel retail CEOs have now shifted away from China as their primary supplier. This marks a significant increase from the 30 per cent reported before the pandemic.
Nearly 80 per cent of the surveyed companies intend to decrease their sourcing from China in the upcoming two years. Instead, they are turning to countries such as Vietnam, Bangladesh, and India, which offer substantial production capacity and maintain stable economic and political environments, as highlighted in the report.
American fashion retailers struggle to end ties with China due to decades of reliance on its efficient and low-cost production. China’s advanced machinery and skilled workforce offer unique stitching, fabrics, and styles that are scarce in other garment-producing countries.
This year, concerns over deteriorating US-China relations and the enforcement of the Uyghur Forced Labour Prevention Act, which prohibits imports from Xinjiang, have prompted retailers to seek alternative supplier bases.
In 2023, cotton products have raised significant apprehension, given that Xinjiang is a major cotton-producing region in China. Addressing forced labour risks in the supply chain has emerged as the second most prominent business challenge, following concerns related to inflation and the economic outlook.
