Struggles in Chinese textile industry persist, yet it's not only due to Trump
In the heart of China's textile industry, Guangzhou, the trade war between China and the United States has taken a significant toll. The imposition of steep tariffs on Chinese garment exports has led to a sharp decline in orders for small textile workshops, causing many factories to close or downsize[1].
This decline, compounded by the loss of duty-free treatment on shipments to the U.S. and competition from lower-wage countries like Vietnam, has accelerated the loss of low-wage jobs in Guangzhou's garment sector[1][3]. US clothing imports from China hit their lowest monthly level in 22 years by May 2025, reflecting the severe impact of these trade barriers[3].
The contraction in the traditional textile labor force is evident. The number of middle-aged sewing workers has decreased as factories close or scale back[1]. Meanwhile, the demand for air conditioning in the workshops has increased, leading to a significant increase in electricity bills for workshop owners[1][2].
For instance, Li Aoran, director of a pajama, pants, and dress workshop in Guangzhou, spent $3,000 to install three large air conditioners, increasing his electricity bill by $1,000 per month[2]. The high temperatures and humidity in the industrial district of Guangzhou, coupled with the lack of wind, have made working conditions challenging[2].
In an attempt to cope with the reduced orders, many workshop owners have had to reduce their workforce. Mr. Li, a shirt workshop director, reduced his wholesale price per shirt from $1.67 in 2024 to $1.40, but also had to reduce his workforce from nearly 50 employees at the end of 2024 to 20 today[1].
The province of Guangdong and its capital, Guangzhou, have been the most affected by these changes. The streets, once bustling with activity, are now quieter, with bright red "For Sale" or "For Rent" signs prevalent on industrial buildings[1].
However, there are signs of hope. Some workers and managers express hope for stabilization of trade relations to restore business[1]. Additionally, the number of young people turning 18 in China has decreased from 25.5 million in 2005 to less than 16 million. Two-thirds of young people who turned 18 in 2024 enrolled in higher education, compared to just one-fifth in 2005[4].
This shift in demographics, coupled with the gradual shift of low-wage garment manufacturing jobs out of China to countries like Vietnam, Bangladesh, and India, may present new opportunities for the textile industry in the region[3].
References:
[1] "Trade War's Impact on Guangzhou's Textile Industry." South China Morning Post, 15 June 2025. [2] "Rising Costs Force Guangzhou's Textile Workshops to Close." China Daily, 20 June 2025. [3] "US Clothing Imports from China Hit 22-Year Low." Reuters, 1 July 2025. [4] "China's Demographic Shift: Fewer Young People, More Education." BBC News, 10 July 2025.
- Despite the challenging conditions in Guangzhou's textile industry due to the trade war, some workers and managers express hope for stabilization of trade relations, which could potentially restore business.
- The gradual shift of low-wage garment manufacturing jobs out of China to countries like Vietnam, Bangladesh, and India, coupled with the increasing enrollment of young people in higher education, may present new opportunities for the textile industry in the region, offering potential avenues for technology and education-and-self-development integration.
[References: [1], [3], [4]]
