Abstract
The Chinese textile and apparel industry has been a global frontrunner for the past 2 decades, yet recent challenges have emerged. Issues such as escalated labor and production costs, trade conflicts, and intensified competition from neighboring Asian countries have posed significant hurdles. Moreover, the COVID-19 pandemic has deepened pressure on China's apparel exports. The government's implementation of the Zero-COVID policy aimed at decreasing the pandemic led to reduced production, factory closures, and supply chain disruptions, negatively impacting the industry's reputation with Western buyers and consequently influencing the export competitiveness of Chinese apparel. Therefore, this study focuses on assessing the export competitiveness of Chinese apparel exports, analyzing two and four-digit product categories under Harmonized System (HS) codes 61 and 62. To achieve this, the study employed evaluation tools such as Compound Annual Growth Rate (CAGR), Market Share (MS), Revealed Symmetric Comparative Advantage (RSCA), and Normalized Revealed Comparative Advantage (NRCA). Findings highlighted significant impacts of the Zero-COVID policy, affecting 31 out of 34 product categories. Chapter 61 displayed a positive 4.75% annual growth rate, while Chapter 62 exhibited a negative growth rate of -1.15%. The study carries significant implications for various stakeholders in both Chinese and other apparel exporting industries, encompassing government entities, industry officials, policymakers, investors, researchers, and students. The limitations arise from the study's reliance on RSCA and NRCA as competitiveness indicators, particularly in utilizing a macro-level approach for measurement without delving into a micro-level perspective. This constitutes a noteworthy constraint in the study's analytical framework.
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Acknowledgements
The first and second authors (Sudipta Das and Md Rokibul Hasan) would like to express their sincere thanks to their department for accepting them as graduate students and supporting them in conducting research and attending classes, seminars, and conferences. The authors would also like to thank the anonymous reviewers of the JGBC editorial team and all those who have contributed in improving the quality of the paper for their kind suggestions and support.
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The first author Sudipta Das prepared the introduction, literature review, methodology sections, collected data and compiled the whole manuscript together. The second author Md Rokibul Hasan collected, analyzed, interpreted the data, and wrote results and conclusions regarding China’s apparel export competitiveness during the zero-COVID policy implementation. The third author Debanjan Das conceived and designed the study and revised the manuscript critically for important intellectual content. All authors read and approved the final manuscript.
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Das, S., Hasan, M.R. & Das, D. The Weave of Challenges: China's Apparel Export Competitiveness in the Face of Zero-COVID Policy. JGBC (2024). https://doi.org/10.1007/s42943-024-00094-6
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DOI: https://doi.org/10.1007/s42943-024-00094-6