Chinese textile companies keep expanding their global footprints, but simultaneously they face tough logistics challenges and trade barriers. Jens Kastner reports.
As intensifying international trade frictions highlight the need for Chinese textile companies to spread their risk by investing in production capacity within diverse global markets, Chinese textile companies are indeed expanding their global footprint. That includes downstream as well as upstream segments. South Asia and southeast Asia remain key regions for such investment, with countries like Vietnam, Cambodia and Bangladesh offering advantages such as lower labour costs and smoother access to raw material sources, such as cotton. According to a recent research note by The Hong Kong Polytechnic University’s School of Fashion and Textiles written for WTiN, “this strategic move allows Chinese firms to leverage cost benefits and enhance their competitive edge in the global market”.
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