Chinese textiles and clothing exports, according to WTO, have declined sharply from US$236 billion in 2014 to US$206 billion in 2016. Its share by value in the global textile and clothing market also declined from 38.6% in 2015 to 35.8% in 2016. As per Chinese customs data, exports of clothes and accessories fell by 0.4% in 2017, while textiles exports saw annual growth of 4.5% during the year.

Hit by the industry restructuring, big clothing brands in the country are struggling to retain margins and secure finance. Revenues are depleting at Fuguiniao, a Hong Kong-listed menswear and shoe manufacturer based in Fujian, since 2015. The company reported a net loss of 10 million Yuan (US$1.57 million) in the first half of 2017, a bond default this year, and it has debts piled up at 3 billion Yuan.