Andey Ng
There is rising chatter about Vietnam and Bangladesh harnessing cheap labor to compete head on with the textile manufacturing “Made in China.” What does this mean for the 20 million people in China whose livelihoods are tied to the textiles industry?
When economic reforms began in the 1970s, China desperately needed a way to stimulate its economy and employ its large unskilled, cheap, yet willing workforce. Policymakers turned their attention to making China the manufacturing powerhouse of the world. Their success eventually coined the label “Made in China,” with 83 million people working in factories by 2000.
This push to manufacturing, particularly in the textiles industry, played a large role in pulling a stunning 800 million people in China out of extreme poverty, defined as those living on less than $1.90 per day. As of 2018, more than 700 million people in China have moved into the middle class.
Most of China’s textile manufacturing is clustered around the coastal regions of China, such as Guangdong, Zhejiang, Jiangsu, and Shandong. These provinces have historical and geographic advantage because their proximity to the ocean allows them to reap the benefits of logistics and shipping. After all, the cheapest way for transporting cargo is still via ships despite advances in aviation and trains. Especially with fashion trends constantly changing so rapidly, it’s crucial that the textile manufacturing hubs are near trade ports.
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