Amidst adjustments in the global industrial chain division of labor, the reliance of some countries on fabrics from China Textile City for their supporting industries is a prominent structural feature of the current international industrial landscape.
A Mismatch Between Order Shifts and Industrial Support Capacity
In recent years, driven by factors such as labor costs and trade barriers, branded apparel companies and large retailers in developed countries like Europe, the United States, and Japan have indeed shifted some garment processing orders to Southeast Asia (such as Vietnam and Bangladesh), South America (such as Peru and Colombia), and Central Asia (such as Uzbekistan). These regions, with their lower labor costs and tariff advantages, have become emerging destinations for garment contract manufacturing. However, shortcomings in their supporting industrial capacity have become a stumbling block in their ability to secure high-end orders. Taking Southeast Asia as an example, while local garment factories can perform basic cutting and sewing processes, upstream fabric production faces significant bottlenecks:
1. Equipment and technology limitations: Spinning equipment for high-count cotton yarn (e.g., 60 count and above), weaving equipment for high-count, high-density greige fabric (e.g., warp density of 180 or more per inch), and production equipment for high-end fabrics with functional properties such as antibacterial, wrinkle-resistant, and breathable properties are largely imported, while local production capacity is limited. Keqiao, home to China Textile City, and the surrounding industrial belt have, after decades of development, formed a comprehensive equipment cluster covering the entire industrial chain, from spinning and weaving to dyeing and finishing, enabling the stable production of fabrics that meet high-end standards.
2. Insufficient industrial collaboration: Fabric production requires close collaboration between upstream and downstream industries, including dyes, auxiliaries, and textile machinery parts. The lack of supporting links in the chemical industry and textile machinery maintenance in most Southeast Asian countries results in low efficiency and high costs in fabric production. For example, if a Vietnamese garment factory needs to purchase a batch of high-density cotton greige fabric, the delivery cycle from local suppliers may be as long as 30 days, and the quality is inconsistent. However, sourcing from China Textile City can arrive within 15 days through cross-border logistics, and batch-to-batch color variation, density deviation, and other indicators are more controllable.
3. Disparity in Skilled Workers and Management: The production of high-value-added fabrics requires extremely high levels of worker precision (such as dyeing temperature control and fabric defect detection) and factory management systems (such as lean production and quality traceability). The skilled workers in some Southeast Asian factories lack sufficient proficiency to meet the production standards of high-end fabrics. However, through long-term development, enterprises in China Textile City have cultivated a large number of skilled workers with sophisticated operational capabilities. Over 60% of these enterprises have achieved international certifications such as ISO and OEKO-TEX, enabling them to meet the quality control requirements of top global brands.
High-value-added orders rely heavily on Chinese fabrics
Under this industrial landscape, apparel companies in Southeast Asia, South America, and Central Asia are almost inevitably dependent on Chinese fabrics if they want to secure high-value-added orders from European and American brands (such as high-end fashion, functional sportswear, and OEM for luxury brands). This is evident in the following ways:
1. Bangladesh: As the world’s second-largest clothing exporter, its clothing industry primarily produces low-end garments. However, in recent years, in an effort to expand into the high-end market, it has begun accepting mid- to high-end orders from brands like ZARA and H&M. These orders require fabrics with high color fastness and environmental certifications (such as GOTS organic cotton). However, Bangladeshi fabric companies are limited to producing low-count coarse fabrics, forcing them to import over 70% of their high-end fabrics from China. High-density poplin and stretch denim from the China Textile City are key items purchased.
2. Vietnam: While its textile industry is relatively well-developed, there are still gaps in the high-end sector. For example, sports brands Nike and Adidas’ contract factories in Vietnam produce moisture-wicking fabrics and antibacterial knitted fabrics for professional sportswear, sourcing over 90% from China. China Textile City’s functional fabrics, thanks to their stable technology, command nearly 60% of the local market share.
3. Pakistan and Indonesia: The textile industries of these two countries are strong in cotton yarn exports, but their production capacity for high-count cotton yarn (80s and above) and high-end greige fabrics is weak. To meet European and American customer demand for “high-count, high-density shirting fabric,” Pakistan’s high-end clothing companies import 65% of their total annual demand from China Textile City. Indonesia’s Muslim clothing industry has experienced rapid growth in recent years, and 70% of the drape fabrics needed for its high-end headscarves and robes also come from China.
Long-term Benefits for China Textile City
This dependence isn’t a short-term phenomenon, but rather stems from the time lag in industrial upgrading. Establishing a comprehensive high-end fabric production system in Southeast Asia and other regions requires overcoming multiple barriers, including equipment development, technological accumulation, and industrial collaboration, making it difficult to achieve in the short term. This provides stable and continuous demand support for China Textile City’s fabric exports: on the one hand, China Textile City can rely on the advantages of its existing industrial chain to consolidate its market position in the field of high-end fabrics; on the other hand, as the scale of clothing exports in these regions expands (Southeast Asian clothing exports are expected to grow by 8% in 2024), the demand for Chinese fabrics will also rise simultaneously, forming a positive cycle of “order transfer – supporting dependence – export growth”.
Post time: Jul-30-2025