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Editorial: Rival textile and clothing producing countries aim to make gains from the US-China trade war
published in Issue 199, September 2019
Rival textile and clothing producing countries are set to make gains from the US-China trade war at the expense of China. Key alternative sourcing countries include Indonesia, Myanmar, Pakistan, the Philippines, Thailand and Vietnam but each brings its own headaches. Bangladesh is increasing its share of the global export market as companies look to diversify their sourcing locations away from China, despite weaknesses in its infrastructure and its historically poor safety standards. Thailand -- in a bid to capitalise on the uncertainty which the ongoing US-China trade war is creating -- is offering tax cuts to entice manufacturers who are seeking to relocate production away from China. However, no single country can take on the manufacturing capacity which China has and, despite the ongoing trade war, China is still an attractive sourcing location as it has excellent infrastructure and manufacturing capabilities, quick shipping and, most of all, a supportive government. As such, companies which are looking to diversify their sourcing locations away from China need to consider what they would lose if they were to leave China behind.
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