US Decreases Clothing Imports from China, Boosting Trade with Other Asian Countries
The slump in the market is largely attributed to trade wars and human rights violations in China. Analysts are closely monitoring the impact of Trump’s new term on this situation.
Reports suggest that Beijing’s dominance in apparel exports to the US has declined in favor of other Asian countries, partly due to human rights abuses and the US-China trade war.
China’s share of the US apparel market dropped by 16.4% from 2013 to 2023, while other exporters like Vietnam, Bangladesh, India, and Cambodia saw an increase, according to a recent report by the USITC.
The decline in China’s market share was mainly due to tariffs imposed by the US and human rights violations against Uyghurs in Xinjiang, as reported in the September publication.
Experts anticipate that Trump’s second term will have further implications on the US market, affecting not only major exporters like China but also smaller nations.
During his first term, Trump imposed tariffs on Chinese goods, leading to a significant decrease in China’s imports to the US, starting from 2018.
Human rights issues in Xinjiang led Congress to pass the Uyghur Forced Labor Prevention Act in 2022, prohibiting imports produced with Uyghur forced labor.
An analyst mentioned that the pandemic and China’s human rights record have contributed to the decrease in Chinese garment exports to the US, pushing the market towards compliant exporters.
The USITC report highlighted that rising wages in China, along with awareness of sourcing products outside China, also impacted exports to the US.
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China’s negative track record on human rights has led the US market to seek compliant exporters, resulting in a decrease in Chinese garment exports to the US.
The USITC report also highlighted a shift in imports to other Asian nations, with Vietnam increasing its share from 10% to 17.8%, benefiting from the US-China trade war.
Vietnam National Textile and Garment Group (Vinatex) reported a 7% increase in textile export value in the first nine months of 2024, expecting further growth by year-end.
A 2023 paper published by the Centre for Economics, Policy and History noted Vietnam’s gains from the US-China trade war, positioning itself as a reliable alternative source for US imports.
Other Asian countries like Bangladesh, India, Indonesia, Cambodia, and Pakistan have also captured a significant share of the US market due to the decline in Chinese exports.
Experts believe that countries like Bangladesh, with compliant industry infrastructure, have benefitted from the void left by China in garment exports.
A worker wearing a face mask while working at the Maxport factory, which makes activewear for various clothing brands, in Hanoi, Vietnam, on Sept. 21, 2021.Nhac Nguyen/AFP via Getty Images
Other Asian Nations Make Gains
The U.S., the top apparel importer globally, saw an increase in imports from South and Southeast Asia as China’s share declined, benefiting nations like Vietnam.
It is evident that the US-China trade war has reshaped the apparel industry, leading to a shift in imports to countries offering competitive advantages in specific sectors.
Regarding Trump’s second term, there is anticipation around the potential impact of his tariff policies on the market, especially targeting China and other nations.
Industry experts suggest that Vietnam may benefit from Trump’s tariffs as an alternative exporter but also face risks from China redirecting exports, potentially worsening its trade deficit.
