Unprecedented numbers of us fashion companies shift away from China as the primary supplier, reflecting escalating diplomatic uncertainty and worries over forced labour. Nearly 80 per cent of the surveyed companies intend to decrease their sourcing from China in the upcoming two years. American fashion retailers struggle to end ties with China due to decades of reliance on its efficient and low-cost production. This year, concerns over deteriorating US-China relations and the enforcement of the Uyghur Forced Labour Prevention Act, which prohibits imports from Xinjiang, have prompted retailers to seek alternative supplier bases. In 2023, cotton products have raised significant apprehension, given that Xinjiang is a major cotton-producing region in China.

Source: Economic Times August 03, 2023 14:50 UTC