Chinas Textile and Garment Industry Is in Deep Trouble

Some analysts pointed out that Chinas year-on-year increase in May exports was due to the rush to export before new U.S. deadlines to impose a tariff hike on $200 billion of Chinese goods.

Xie Tian, a professor at the University of South Carolinas Aiken School of Business, believes that exports increased slightly in May, and that most products originally flowing to the United States have been redirected to other countries.

He told The Epoch Times that it would still be difficult to maintain the long-term growth of exports. “Because no country has the market and purchasing power of the United States, and no country is able to tolerate Chinas surplus other than the United States,” Xie said. “For instance, if Chinas exports to other countries such as in Southeast Asia, Europe, and the Middle East increase, then imports will also inevitably increase. These countries will not tolerate a large surplus like the United States, so Chinas exports will still have problems.”