China’s textile industry is facing challenges with factory closures and layoffs as domestic demand shrinks. A recent report by Mekong highlighted the strain on the once-dominant sector, citing a significant drop in order sizes and a shift towards shorter contracts. This volatility has impacted profit margins and complicated long-term planning, with Zhejiang, Guangzhou, and other manufacturing hubs feeling the effects. The report attributed this downturn to various factors, including weak consumer confidence, economic uncertainty, and slowing income growth, hindering the shift towards consumer-led growth as envisioned by Beijing.
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