Chinese apparel export was growing exponentially till 2014 and later it showed a steep decline. In 2014, Chinese global apparel export was the highest ever and within two years it has lost 14.79 per cent of its exports. Due largely to its skilled workforce, China is ranked the number one textile and clothing exporters in the world producing over 43.1 per cent of global demand. However, now China is concentrating more on value adding tech intensive products. China’s textile industry is shifting gears for several reasons including higher costs of production and scarcity of a skilled labour. Exports are on the decline but the sector still maintains its key position in the world.

As per the 13th five-year plan of Chinese Government for 2016 to 2020, China is strategically moving towards more value adding tech intensive products. The plan is to maintain traditional market share and grow more on high value adding product range. Data indicates China is losing its export dominance since 2015 in almost all product sectors in textiles and clothing industry which are largely divided into eight major categories such as garment, cotton fabrics, chemical fabrics, wool fabrics, silk fabrics, knitted fabrics, textile machinery and best fiber.

An analysis of China’s Textile Industry Development Report (2014 to 2015) shows textile fiber production in China touches 50+ million tons, accounting for 54.36 per cent of world share. As much as 64.2 per cent of the world’s chemical fibers, 64.1 per cent of synthetic fibers and 26.2 per cent of cotton were produced in China. Further, apparel production in China reached 29.9 billion units in 2014, which is 10.4 per cent higher as against 2013. This huge production capacity of China gives a clear view that it is very probable that China will remain the top apparel sourcing country for international buyers.