Additional background reading: China’s U.S. Exports See Biggest Drop in 30 Years (Source: Sourcing Journal| January 19, 2024)
Discussion questions:
#1 What makes China a controversial apparel-sourcing destination with heated debate? What are the benefits of sourcing from China, and what are the concerns?
#2 As noted in the background reading, China accounted for about 21% of US apparel imports 2023, which marked a new record low in the past decade. What are the key drivers behind this shift, and do you anticipate this trend to continue in the next 3-5 years? Why or why not?
#3 Should US fashion companies decouple or derisk with China and to what extent? Please provide reasoning for your recommendation.
#4 Why do you think the US textile industry cares about apparel imports from China? What factual data/statistics supports or challenges the comments in the second video?
#5 Feel free to share any other reflections on the two videos (e.g., anything you find interesting, surprising or thought-provoking).
FASH455 Global Apparel & Textile Trade and Sourcing 
#1: China is a controversial apparel-sourcing destination because the country is known to have cheap and sometimes forced labor. In the past, China has been associated with bulk shipments of rather low quality, which also has made an extremely negative environmental impact on the Earth. The countries that source from China have been direct victims of aggressive and predatory trade practices and many American brands have been forced to lay off their own factory employees and even close their factories. China’s main supply of cotton is grown in Shing Jang and manufactured with forced labor. The benefits to sourcing from here would be cheap labor, but the concerns, which outweigh the benefits in my opinion, are risks of unethical practices dealing mainly with humane working conditions and sustainability as it relates to the environment.
#3: I believe that it is important for US fashion companies to decouple with China within the next 10 years. It is so important for brands to be transparent with their supply chain, and the concern for ethical practices in factories and sustainability are growing among many consumers. I do see how this poses a challenge for brands, knowing that they would have to find new suppliers, pay more for ethical, humane labor and working conditions, and the complexity of opening new factories, but I really do believe that this would pay off for any and all US fashion brands in the long run.
Hi Julia, great responses! I agree with you in the fact that it will be quite difficult for brands to separate from China, especially knowing how entrenched the country is in the garment industry. However, it is definitely something that will be beneficial in the long run. China has held onto a type of monopoly for many decades when it comes to manufacturing and with there being so many socio/economic/political issues within the country and its interactions with other countries (especially the United States), a distancing is required and will hopefully create a more equal and ethical industry.
#1
China is a controversial apparel-sourcing destination because of its “aggressive predatory trade practices” as stated by Kim Glas, the President of NCTO, in the hearing. This statement is supported by countless reports of China’s forced labor, poor working conditions, and low-wage practices. In addition, sourcing in China is decreasing the amount of textile and apparel jobs in the US, which is damaging to the economy. Many US apparel manufacturing companies have shut down and laid off employees, due to the reliance on China as a sourcing destination.
#2
Due to more awareness of sustainability, I believe that in 3-5 years, there will be a significant decrease in the amount of brands and retailers that source from China. Currently, there is already a depletion in China’s involvement in our supply chain. According to the Sourcing Journal, Chinese exports to the US, have seen the largest drop since 1995. I believe that this will decrease more in the future, as near-shoring becomes more of interest to US textile and apparel manufacturers.
U.S. fashion companies have substantially reduced sourcing from China, but why did U.S. textile and apparel manufacturing continue to struggle?
They continued to struggle because when US apparel retailers source from China, then US textile manufacturing companies will receive less business because they cannot compete with the low prices in China.
Beyond describing what was mentioned in the video, share your reflections
Well, I think China is a controversial apparel-sourcing destination for many reasons. First of all, everything is so cheap and there is every resource you could need in China, but on the other hand, the working conditions are poor, the pay-wages are bad, and the sustainability is questionable. The benefits of sourcing from China are it is cheap, agile, and the leading textile producing country. The concerns of sourcing from China are the working conditions and ethics. Additionally, sustainability has become a growing concern with consumers and China is a massive producer of fast fashion. Furthermore, China trade policies are predatory and controversial because solely China benefits, while hurting the US. In general, I think sourcing from China is more negative than positive, and we should focus on near-shoring.
#1
China is a controversial apparel-sourcing destination because of their predatory trade practices. This is threatening to the United States because our textile and apparel industry here as well as our regional allies have been a victim of these practices. The US textiles industry holds 540,000 workers. China being an apparel-sourcing destination for the United States is a reason millions of jobs have been lost and there is a graveyard of once successful factories. Glas continuously emphasized that barely any of the shipments coming in from China are inspected by customs and essentially only 2/10 of imports are. China sends 3 million packages to the US each day so the number of them that have not been properly inspected because of loopholes in trade law is large. The threat to the US textile industry is the concern of sourcing from this country but the benefits include the cheaper prices and technically advanced economy. China can produce a wide range of products because of their technology yet offer it to brands at much a lower price than other countries, such as the United States.
#5
The first video was surprising to me because it showed a factory in China, Kalito, that appeared to have very good social standards. One of the factory owners referred to the 300 workers as 300 families and discussed how they get paid a good wage as well as mentioned changes that have been implemented to make the work space a better place for them. This was interesting and also surprising to learn about because most of the factory environments we learn about in Asian countries have poor working conditions. It is encouraging to see that there are manufacturers that care for their employees. However, a big point made in the video that overshadows this is that not all factories in China are made equally. Shein operates over 6,000 factories in China and these do not have a healthy production line like Kalito does. It was eye opening to see the conditions in this singular factory then hearing that Shein works with such a high number of manufacturers in the same area.
#1 There are many sides to the debate surrounding China as an apparel sourcing destination, making it a controversial topic. On the one hand, topics of labor costs, ethics, and sustainability make China a highly controversial location. As people become more and more concerned with these issues, China is often in the center of these discussions. Additionally, through the lens of the US at least, predatory trade policies and regulatory standards further push China into a position of controversy, as unfair advantages and treatment seem to be granted goods from overseas. Yet on the other hand, China is a major powerhouse in the industry and is often sought after due to its strength in mass output and competitively low production costs. China also has some companies undertaking dramatic changes to comply with standards that surround rising concerns about ethics and other topics, which only makes the debate more nuanced and complex.
#5 I found the first video to be extremely interesting and somewhat jarring. It was suprising to see such an advanced and “good” business being highlighted in comparison to the arguments that Glas proposes. Obviously, China is not a good or bad / black or white topic, but the businesses that are advancing and meeting modern standards of regulatory codes makes it even more complex of a discussion. It made me think a lot about how we can navigate this situation, with both mass fast fashion producers and ethically sound factories simultaneously existing in a country of heated debate. When further thinking about how the US and sourcing strategies come into play in regard to this, it made me rethink some stances I had in previous assignments and discussions.
#1 What makes China a controversial apparel-sourcing destination with heated debate? What are the benefits of sourcing from China, and what are the concerns?
China has become increasingly controversial when it comes to apparel-sourcing in the past decade due to numerous reasons. A certain lack of amity between their political leaders and ours here in the United States has continued to degrade (especially under Trump) to the point that a full-out trade war was declared with insanely high tariffs being leveraged on Chinese made goods. Human rights abuses of the Uyghur minority within Xinjiang and governmental crackdowns on freedom of speech and the press have also made Western companies more reluctant to do business wit the country. However, China has been the primary source of textile and apparel manufacturing for so long that they still remain at a real advantage. Because of the size of the country and its population, there is more room for large factories to be built and workers to staff them. Their infrastructure is also incredibly advanced with the capabilities to produce a vast amount of varied goods. These are things alternate destinations can lack either in number or in capability, which gives China an advantage since companies often cannot go anywhere else if they need a certain type of product manufactured, especially if they want to keep costs relatively low. Within the next 3 to 5 years I can definitely see China continue to stay dominant as a top sourcing location, at least until countries like India, Vietnam, Thailand, and CAFTA-DR countries etc. are able to ramp up their production capabilities and make larger investments in their infrastructure an begin to catch up. Like it or not, China has a monopoly on sourcing and will stay at the top for the next little while at the very least.
#4 Why do you think the US textile industry cares about apparel imports from China? What factual data/statistics supports or challenges the comments in the second video?
I believe the US textile industry cares so much about apparel imports from China because it makes it harder to keep track of where the textiles themselves are coming from. As Kim Glas stated, excessive amounts of forced labor cotton from Xinjiang is flooding the globe. Despite laws passed by the United States and several other countries to try and stem the ability of China to have this cotton used in textile and apparel manufacturing, a very small percentage (only about 35ish%) is actually being seized by port authorities and inspected, allowing large loopholes and gaps for continued exploitation. The US textile industry (and with us being such a large producer of cotton), wants more apparel companies to use textiles made by our country and if there cannot be sufficient regulations on the source of the textiles used to manufacture goods made in China, it not only continues to benefit the horrific exploitation of a vulnerable religious minority but also undermines the United States textile industry in its efforts to stay afloat.
#1 China’s reputation as an apparel-sourcing location holds controversy for various reasons. China’s main concern revolve around their labor practices, including cheap or forced labor. Additionally, China relies on cotton sourced from Xinjang, where most reports of forced labor come from which adds to their controversy. While sourcing from China allows companies to face cost advantages due to cheap labor, concerns regarding work conditions and sustainability sometimes outweigh these benefits. I believe, due to environmental and ethical reasons, US fashion companies will continue to withdraw from souring from China. Sustainability and transparency have become so important for consumers that the desire to shop sustainability will drive consumers away from unethically sourced companies.
#3 I personally think that it could be beneficial for the US to decouple from China. Over-dependence on China as a single sourcing destination holds many risks but suddenly and completely decoupling could be just as risky. I think if US companies decide to withdrawal form the country the best way to do it is slowly and strategically over many years. I think diversifying sourcing bases across multiple countries while maintaining flexibility could be the best for company’s success.
#3. While we can see some improvement in certain factories from China, I do still think the US could benefit from decoupling from them because majority of them still have quite controversial practices. However, the US heavily relies on China as a sourcing destination, so perhaps adjusting our sourcing strategy as opposed to decoupling all together would be more beneficial for the US.
#5. I found the video “I Visited a Chinese factory” extremely thought provoking and interesting. As a sourcing destination, China can be controversial due to their labor practices, social responsibility issues, and quality of materials. However, the factory shown in the video proves that not all factories in China operate the same and there are in fact advanced factories with very ethical practices. This factory focuses on creating quality products, providing employees with a living wage, and obtaining sustainability certifications. This video made me realize that there are benefits to sourcing from China aside from the low cost, there are factories that can provide retailers with a fair cost and quality products while also prioritizing sustainability and social responsibility.
Hi Charlotte! I also was going back and forth when deciding whether the US should decouple or de risk from China. The reported forced labor makes me want to say decouple while the longstanding relationships and low cost make me say de risk. I like how you pointed that out! I agree that de risking would be more effective than decoupling due to the US’s reliance on China. I also found the “I Visited a Chinese factory” to be interesting and a great representation about how Chinese factory’s are evolving in a positive way.
Different sectors of the textile and apparel industry have various strong opinions on sourcing from China. The US textile industry feels as though importing from China is taking away jobs from US textile employees. Kim Glass, President of the National Council of Textile Organization, also points out that China sources most of their cotton from Xinjang where forced labor is practiced. On the other side, we’ve seen textile factory owners in China display a high level of sophistication in their manufacturing process. It is noted that China has drastically changed over the last few decades and that the environmental and labor standards are at an all time high. I believe that the low sourcing costs that China can offer the US and the seemingly improved ethical practices in the textile factories in China will allow China to continue to be a primary sourcing destination for the US textile and apparel industry. However, I think it is necessary that stricter regulations are put in place to insure ethical cotton sourcing and increased utilization of US textile production.
#1
Some benefits of sourcing from China are that although far from perfect, the environmental conditions and working continues have improved. High technology companies, like Apple, make their products in China because of the advanced technology. The Kalito factory shown in the first video depicts China as a good sourcing destination because workers are treated well and the high technology in the factory, ensuring high-quality products. Sourcing from these factories in China provides these workers with jobs. Another benefit of sourcing from China is the short distance to raw materials which are essential for production, making it a convenient sourcing location. A concern about sourcing from China is not all factories have the same conditions. For example, there have been a lot of concerns that Shein Chinese factories treat employees poorly and utilize forced labor with very low pay, which differs very much from the Kalito factories. Another concern about sourcing from China is the aggressive trade practices from China and cotton from Xingjiang that has utilized large-scale forced labor for its production. De minimis has also been used by China to bypass inspection by packages containing forced labor goods, counterfeit products, and other illegal products. American textile plants have had to idle equipment and lay off workers. Because there are benefits and cons of sourcing from China, utilizing China as an apparel-sourcing destination is controversial. Overall, I feel at this time it is best to move sourcing away from China into other Asian countries because of China’s aggressive trade practices, which a lot of companies have been doing.
#1 What makes China a controversial apparel-sourcing destination with heated debate? What are the benefits of sourcing from China, and what are the concerns?
China is a controversial apparel-sourcing destination for a variety of factors, including harsh working conditions, environmental concerns, and human rights issues. Despite the fact that certain companies in China and the government have made improvements in these areas, challenges still persist, contributing to the current heated debate about moving supply chains away from China. As well, China’s aggressive predatory trade practices, including the utilization of cheap and forced labor like in Xinjiang, has added to the criticism surrounding supplying textiles and apparel from China. Despite the ban on Xinjiang cotton and its association with forced labor, it continues to remain within global supply chains. Due to this, US fashion companies are working overtime to diversify their supply chains and explore more near-shoring options to reduce risks related to sourcing from China. Considering all of these factors, I believe that there will be an overall decrease in apparel sourcing from China despite the benefits such as cost. As companies continue to prioritize ethical and sustainable supply chain practices, as well as explore new options and opportunities through free-trade agreements and tariffs in near-shoring sourcing, sourcing from China will diminish and so will the risks associated with doing so.
I was also very shocked to learn that while the US Imports of Textile Apparel and Footwear (2022) totaled 184 billion in shipments of Xinjiang cotton but only 39 million in shipments were detained for possible UFLPA violations despite the ban on Xinjiang cotton.
#1 China is a controversial apparel sourcing destination for a few reasons. Some concerns when sourcing from China are rising costs, tariffs, and poor labor conditions as well as a growing interest in diversification from companies. However, it is beneficial to use China as a sourcing base as they have the capabilities and known expertise when it comes to the textile and apparel industry. China is able to produce a diverse amount of product categories due to their technologies and manufacturing skills for lower costs, allowing for brands to achieve a competitive advantage.
Hi Mia! You did a good job at describing the pros and cons retailers have to consider when sourcing from China. Low costs and product diversity are compelling pro arguments and poor working conditions and high tariff costs contribute to the cons. I agree with you that sourcing from China is more so beneficial than not. I do think that working conditions are improving in some of China’s factories which may help reduce the stigma around sourcing from that region.
China is a controversial sourcing destination for a variety of reasons, two being the slave labor in Xinjiang and the negative effects that sourcing from China has on US T&A workers. Kim Glas stated in her testimony that 20% of the world’s cotton is made in Xinjiang using slave labor. On top of that, 72% of all Chinese cotton apparel or textiles utilized Xinjiang cotton. Considering the large amounts of cotton apparel that is shipped from China to the US, these statistics are very concerning. This aspect of the debate can become heated due to the severity of the claims against Xinjiang.
Another reason why sourcing from China is controversial is because trade laws like The De Minimis Tax Exemption allow shipments from China to the USA to enter without duties of taxes paid if the shipment is worth less than $800. This is a goldmine for Chinese fast-fashion retailers whose cheap products can now be shipped to US customers free of duty and taxes. The De Minimis Tax Exemption and other trade laws allow Chinese businesses to entice a large US audience with low prices. This has caused many US T&A factories to go out of business or have to lay off workers. This aggravates citizens of the US because it’s as though US lawmakers are trying to help Chinese businesses over US businesses. This can cause the debate to become heated.
Another reason why this debate can be heated, is because there are around 15 million people employed by China’s T&A industry. Having brands completely stop sourcing from China means millions of people will lose their jobs, mostly women and migrant workers. There are also factory owners in China who are actively trying to do good by their workers and the environment. What’s happening in Xinjiang is awful and US brands should do everything they can to avoid cotton made in that area to be used in their products. But, does that mean punishing business owners in China who US companies have had positive relationships with for years?
I believe that China will continue to be a significant apparel sourcing destination for US fashion companies in the next 3-5 years. This is because the region has a long standing history with US brands and customers, and the technology offered in China is extremely advanced in many industries from textiles, cars, and iPhones, etc. Although I think some brands will start to source from CAFTA-DR and USMCA regions, most brands won’t be able to turn away from the cheap prices, diverse product offerings, and efficiency. I also believe that the changes some factory owners are making regarding working conditions and sustainability will be enough to persuade US companies to continue doing business in China.
#3 Should US fashion companies decouple or de-risk China and to what extent? Please provide reasoning for your recommendation.
I do not think US fashion companies should decouple with China because there are millions of garment workers in Asia who depend on their jobs. Manufacturers in Asia also have the ability to produce many different types of products in a timely, cost-effective manner. They also have the means to produce billions of clothing items every year and keep up with the high-demand for clothing.
If western brands stopped sourcing from China and moved it to Europe, they wouldn’t have the production capabilities to produce as much clothing in a short amount of time. Labor costs are also higher in Europe and the USA than in China. This is another reason why US fashion companies should not disassociate from China completely. Although decoupling is not the way to go, de-risking could help ease concern surrounding sourcing from China. De Risking could involve ceasing using cotton produced in Xinjiang and encouraging environmental compliance and safer working conditions. Taking precautions to avoid risk will be more effective than decoupling because it is a more realistic and less disruptive solution. The US has been sourcing from China for decades, and I do not think it is even possible or feasible for US brands to disassociate from the region entirely.