Geopolitical situation, four trends in global textile trade

 A recent study in the 2023 Review of World Trade Statistics and data from the United Nations (UNComtrade) shows that there are some interesting trends in international trade, especially in the fields of textiles and clothing, influenced by increasing geopolitical tensions and changes in trade policies with China.

Foreign research has found that there are four distinct trends in global trade compared to the past. Firstly, after an unprecedented frenzy of purchasing and a sharp growth of 20% in 2021, clothing exports experienced a decline in 2022. This may be attributed to the economic slowdown and high inflation in the major clothing import markets of the United States and Western Europe. In addition, the reduced demand for raw materials required for the production of personal protective equipment (PPE) has led to a 4.2% decrease in global textile exports in 2022, reaching $339 billion. This number is far lower than other industries.

The second scenario is that although China remains the world's largest clothing exporter in 2022, as market share continues to decline, other low-cost Asian clothing exporters take over. Bangladesh has surpassed Vietnam to become the world's second largest exporter of clothing. In 2022, China's market share in global clothing exports dropped to 31.7%, the lowest point in recent history, with a decline in market share in the United States, the European Union, Canada, and Japan. The trade relationship between China and the United States has also become an important factor affecting the global clothing trade market.

The third scenario is that EU countries and the United States remain the dominant countries in the clothing market, accounting for 25.1% of global textile exports in 2022, up from 24.5% in 2021 and 23.2% in 2020. Last year, textile exports from the United States increased by 5%, the highest growth rate among the top 10 countries in the world. However, middle-income developing countries are growing steadily, with China, Vietnam, Türkiye and India accounting for 56.8% of the global textile exports.

With increasing attention to offshore procurement, especially in Western countries, regional textile and clothing trade models will become more integrated in 2022, becoming the fourth emerging model. Last year, nearly 20.8% of textile imports from these countries came from within their respective regions, an increase from 20.1% last year.

Research has found that not only Western countries, but also the 2023 Review of World Trade Statistics has shown that even Asian countries are now diversifying their import sources and gradually reducing their dependence on Chinese products to mitigate supply chain risks, all of which will lead to better expansion. Due to the unpredictable customer demand in various countries affecting global business and the international textile and clothing industry, the fashion industry has fully felt the aftermath of the epidemic.

The World Trade Organization and other global organizations are re committed to multilateralism, better transparency, and opportunities for global cooperation and reform, as other small countries join and compete with the largest countries in the trade sector.