A new survey by the U.S. Fashion Industry Association found that 80% of fashion executives plan to decrease their reliance on Chinese sourcing over the next two years. The survey also found that 15% of executives plan to significantly reduce their China sourcing, and that over 40% noted that less than 10% of their apparel products originate from China.

This shift reflects a growing apprehension among U.S. fashion companies about the risks of relying too heavily on China. The deteriorating U.S.-China bilateral relationship, the COVID-19 pandemic, and concerns about forced labor in Xinjiang have all contributed to this trend.

The fashion industry's move to decrease reliance on China is part of a broader trend in various sectors to reduce risk by diversifying supply chains. The pandemic underscored the vulnerabilities of relying solely on one country for supplies, and the Russia-Ukraine war has further highlighted the need for resilience.

China remains an important sourcing base for the fashion industry, particularly for materials. However, the survey found that 97% of fashion executives noted substantial sourcing from other Asian countries, such as Vietnam, Bangladesh, and India.

The shift away from China is likely to have a significant impact on the global fashion industry. China has been the dominant player in the industry for decades, and its decline will create opportunities for other countries to compete. It will also force fashion companies to rethink their supply chains and find new ways to mitigate risk.