China Re-shoring Rises on Tariffs, Supply Chains Prove Resilient

Shitouchenli

sales Manager

We are a leading knitted fabric sales company with a strong focus on providing our clients with a wide range of fabric styles. Our unique position as a source factory allows us to seamlessly integrate raw materials, production, and dyeing, giving us a competitive edge in terms of pricing and quality.
As a trusted partner in the textile industry, we take pride in our ability to deliver high-quality fabrics at competitive prices. Our commitment to excellence and customer satisfaction has positioned us as a reliable and reputable supplier in the market.

In the global trade landscape, tariff policies have long been a key factor influencing the flow of orders. Recently, tariff disparities are pushing orders to gradually return to China, underscoring the strong resilience of the local supply chain.
High Tariff Pressures Spur Order Shifts to China
In recent years, countries like Bangladesh and Cambodia have faced high tariff burdens, with tariffs reaching 35% and 36% respectively. Such steep tariffs have significantly increased cost pressures in these nations. For European and American buyers, cost reduction is a critical consideration in business decisions. China, however, boasts a well-developed industrial system, particularly excelling in integrated capabilities spanning fabric production to garment manufacturing. Industrial clusters in the Yangtze River Delta and Pearl River Delta not only ensure production efficiency but also guarantee product quality, prompting some Western buyers to shift their orders to China.
Canton Fair Results Validate China’s Market Potential
The transaction data from the third phase of the 2025 Canton Fair in May further underscores China’s market appeal. Textile enterprises from Shengze secured $26 million in intended orders at the fair, with on-site purchases from clients in Mexico, Brazil, Europe, and beyond—a testament to the event’s vibrancy. Behind this lies China’s excellence in functional innovation for fabrics. Applications of cutting-edge technologies such as aerogels and 3D printing have enabled Chinese fabrics to stand out in the global market, gaining international recognition and showcasing the innovative strength and growth potential of China’s textile industry.
Cotton Price Dynamics Bring Benefits to Enterprises
In terms of raw materials, changes in cotton prices have also boosted order re-shoring. As of July 10, China’s cotton 3128B index was 1,652 yuan/ton higher than imported cotton prices (with 1% tariff). Notably, international cotton prices have fallen by 0.94% year-to-date. This is good news for import-dependent enterprises, as raw material costs are expected to decrease—further enhancing their competitiveness and making Chinese manufacturing more cost-effective in attracting global orders.

The resilience of China’s local supply chain is the fundamental guarantee for order re-shoring. From the efficient production of industrial clusters to continuous technological innovation and favorable shifts in raw material costs, China’s unique advantages in the global supply chain are on full display. Looking ahead, China will continue to leverage its robust supply chain strength to shine on the global trade stage, offering the world more high-quality, efficient products and services.