The alarm of the declining competitiveness of China's textile industry has been sounded

According to the latest data from the General Administration of Customs, China’s textile and apparel exports reached $1.338 billion and $8.24 billion respectively in recent days, showing a significant increase of 33.6% and 47.5% compared to the same period last year. These figures are much higher than the previous year’s growth rate of 23.6%. However, despite these positive numbers, it's worth questioning whether this growth truly reflects an improvement in the competitiveness of China’s textile industry or if it masks a deeper downward trend. Is the recent rise just a temporary rebound caused by the devaluation of the Vietnamese dong against the U.S. dollar? In my view, while the depreciation of the Vietnamese currency is indeed a factor, it’s more like a warning signal rather than the main cause. At the end of last year, the prices of key raw materials such as cotton and additives surged sharply, along with rising land costs and labor expenses. This has driven up manufacturing costs in China, leading many textile orders to shift overseas. Reports from “Yangguang News” highlighted that Vietnam has devalued its currency three times in the past 14 months, with the Vietnamese dong depreciating by 9.3% against the U.S. dollar since February 11 this year. As a result, many foreign orders have moved to Vietnam without hesitation. China, once the dominant player in textile manufacturing, now finds itself struggling to maintain its position. But we must not ignore a crucial point: Vietnam is emerging as a new manufacturing hub. The so-called “population dividend” and simple processing trade are no longer our competitive advantages. Therefore, we need to rethink our strategy—focusing on technology, product innovation, and intellectual property to secure a more essential place in the global supply chain. In addition, the issue of labor shortages in the textile industry has become increasingly prominent, especially after the Spring Festival. With migrant workers returning home, many factories are struggling to find enough workers. Why is this happening? The dyeing and finishing industry is known for long hours, manual labor, poor working conditions, and low wages. Many graduates in textile-related fields are choosing alternative careers, making it difficult to fill positions. How many foreign orders will continue to be placed if production can’t be guaranteed? This raises important questions about process optimization, system adjustments, and employee welfare. Another challenge comes from environmental regulations. China’s textile industry has long been associated with high pollution levels, particularly in dyeing and finishing. Many factories used to cut corners on wastewater treatment to reduce costs. However, with stricter environmental policies being enforced, numerous small-scale dyeing plants have been shut down due to non-compliance. This has added pressure to an already challenging industry. Moreover, the quality and functionality of Chinese textiles must evolve. Global market trends are constantly shifting, and consumer preferences are changing rapidly. We need to pay close attention to fabric styles, functional innovations, and market demands. Investing in research and development, improving finishing technologies, and building strong brand identities are all critical steps forward. To stay competitive, the Chinese textile industry must focus on reducing energy consumption, streamlining production processes, and upgrading the entire industrial chain—from machinery and additives to dyes. These strategies will help enhance resilience and adaptability in the face of global economic uncertainties. The alarm bell is ringing. Are we ready to respond? It’s time to act before it’s too late.