April data shows that China's textile and garment exports to the United States were only 2.93 billion US dollars, a year-on-year plunge of 19.7%. Among them, the export volume of knitted and woven garments decreased by 10.8%, and the unit price dropped by 5.2%, presenting a situation of "both volume and price decline". The "reciprocal tariff" policy implemented by the US government became the direct trigger - although the tariff was reduced from 125% to 10% at the China-Us economic and trade talks in May, the 20% "fentanyl tariff" was still retained. The policy uncertainty has put enterprises in a predicament of "taking orders like gambling".
What is more serious is that American importers are accelerating their shift to the Southeast Asian market to avoid risks: In March, the United States' imports of textiles and garments from China dropped by 7.2%, while those from Vietnam soared by 20.4%. The substitution effect from countries like Bangladesh and India continues to eroded the market share of Chinese enterprises, and the survival pressure on small and medium-sized enterprises has sharply increased.
The EU market has seen a counter-trend boom, with "low profit but high sales volume" becoming a lifeline
In contrast to the dismal state of the US market, the European Union has become a "growth pole" for China's textile and garment exports. In April, exports to the European Union soared by 16.2% year-on-year. Among them, the growth rates of Germany, Italy and the Netherlands reached 27%, 16% and 19% respectively, and the export volume of knitted and woven garments increased sharply by 27.8%. Despite a 2.6% drop in unit price, the strategy of "compensating for price with volume" enabled the enterprise to maintain its cash flow.
Eurostat data shows that in March, the EU's imports of textiles and garments from China rose by 22.8%, far exceeding those of competitors such as Bangladesh and Turkey. The advantages of China's supply chain in terms of cost performance and capacity stability remain significant.
The market differentiation between ASEAN and the "Belt and Road Initiative" is obvious, and new growth points have begun to emerge
The ASEAN market performed weakly: In April, exports to ASEAN decreased by 2.1% year-on-year, with clothing exports falling by 11.9%. As the largest importer in the region, Vietnam's demand for Chinese yarn and fabric dropped by 1.9%. Only a few countries such as Cambodia (yarn and fabric exports increased by 14.9%) and Indonesia (increased by 2.5%) showed highlights.
The Belt and Road Initiative has become a new engine: Exports to co-construction countries rose by 4.4% in April, with Nigeria, Brazil and Chile increasing by 36%, 16% and 33% respectively. From January to April, the cumulative exports reached 52.41 billion US dollars, accounting for 57.9% of China's total textile and garment exports. The diversified layout has gradually alleviated the country's reliance on the United States.
The predicament of "increased production but no increase in revenue" under the price war
Although the export volume in some markets increased, the entire industry was Mired in the quagmire of "low-price competition" : In April, the export unit prices of yarn, fabric, home textiles and knitted and woven garments decreased by 3.6%, 8.4%, 15.4% and 6.7% respectively. From January to April, the export volume of knitted and woven garments increased by 7.7%, but the unit price plummeted by 9.1%. Enterprises are facing an awkward situation where "the more they sell, the harder they lose". The person in charge of a fabric factory in Jiangsu Province admitted frankly, "Operating incurs losses, while halting operations means not even paying wages. The industry is undergoing a profound reshuffle."
The global economic downturn is superimposed with policy fluctuations
The OECD has lowered its global economic growth forecast for 2025 from 3.3% to 2.9%, and the growth rate of the US economy has been further cut to 1.6%, intensifying the pressure of shrinking external demand. Despite the phased reduction of tariffs between China and the United States, the risk of repeated "fentanyl tariffs" and subsequent policies still exists. Textile and garment enterprises still need to accelerate their breakthroughs in exploring emerging markets, increasing product added value, and optimizing supply chain layout.
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