On April 9, the Trump administration suddenly threw out the “tariff bomb”. The tariffs on all Chinese goods exported to the United States soared directly to 125%, and it was planned to triple the tariffs on small packages. It set a record in the history of the Sino-US trade war. But then, the United States clarified that the tariff on China was increased to 145%, not 125%, and it had previously omitted the 20% tariff that had been implemented in early March. This series of tariff measures has exacerbated Sino-US trade frictions and posed severe challenges to China’s textile industry. However, driven by the “Belt and Road” initiative, China’s textile industry is showing strong resilience and new development opportunities through market diversification and industrial chain reconstruction.
The dilemma of the textile industry under Sino-US trade frictions
The US tariff policy has had a certain impact on China’s textile exports. Although China’s exports to the United States have declined, the US market is still one of the important export destinations for China’s textile industry. The high tariff barriers of the United States not only increase the export costs of enterprises, but also put pressure on their profits. In addition, the United States has threatened to cancel the most-favored-nation treatment for trade with China, which has further exacerbated the uncertainty of the trade environment.
New opportunities brought by the Belt and Road Initiative
The proportion of China’s textile exports to the United States has dropped from 17% in 2018 to 9.8% in 2023. Today, China has reached a consensus on building a community of shared future with 17 neighboring countries, signed a cooperation agreement on jointly building the Belt and Road Initiative with 25 neighboring countries, and has become the largest trading partner of 18 countries. China’s political mutual trust and interest integration with neighboring countries have continued to deepen, and it has embarked on a bright road of good neighborliness, friendship, cooperation and win-win. The countries along the Belt and Road Initiative are becoming new growth poles. In 2024, China’s textile industry will export more than US$120 billion to co-construction countries, accounting for 40% of global exports, an increase of 10 percentage points from ten years ago. Southeast Asia, the Middle East, Africa and other regions have strong consumer demand and low tariff barriers. Enterprises can explore emerging markets through international exhibitions and cross-border e-commerce.
1. Industrial chain reconstruction and regional coordination
China can export textile raw materials to countries with lower labor costs such as Vietnam and Bangladesh, and use their garment processing capabilities to re-export to the United States to avoid direct sanctions. Jiangsu companies set up smart textile industrial parks in Central Asia to export equipment and technology to achieve localized production. Uzbekistan’s Litai Textile Park is a successful case, driving local exports to $7 billion.
2. Policy and infrastructure support
Logistics network optimization: Logistics networks such as the China-Europe Express reduce transportation costs and improve transportation efficiency.
Simplified trade processes: Free trade agreements along the Belt and Road (such as RCEP) further simplify trade processes and reduce trade barriers.
Infrastructure project guarantees: China Energy Construction and other companies have deployed infrastructure projects in 147 countries to provide supporting guarantees for overseas investment in the textile industry.
Against the backdrop of Sino-US trade frictions, the Belt and Road Initiative has provided new development opportunities for China’s textile industry. Through market diversification, industrial chain reconstruction and policy support, China’s textile industry can not only effectively hedge its dependence on the US market, but also open up new market space in countries and regions along the Belt and Road. In the future, China’s textile industry is expected to achieve industrial upgrading and sustainable development at the new turning point of globalization.
Huaian Good Life Textile Co., Ltd. actively explores markets along the “Belt and Road” route
Good Life Textile Co., Ltd. accounts for about 1/10 of the US market. In the face of the current international situation, we will actively adjust our strategy and actively explore markets along the “Belt and Road” route. At the same time, for American customers, we will also actively find a breakthrough for continued win-win cooperation from many aspects, such as transportation methods, or reducing the prices of poncho towels, changing robes, bath towels, etc.
Post time: Apr-15-2025