China seems to be bearing the brunt of the ongoing Ukraine –Russia war as its share of textile and apparel exports to both countries dwindled to 2.5 per cent to total $8.2 billion in 2021.

A few downstream weavers in China received suspension notices from Eastern European customers before the conflict broke out. Orders to these weavers are not expected to improve soon, as per a CCF Group report.

Exports to Russia surge six times in 20 years

An important export market for China's textiles and apparel, Russia also enables China to diversify to other countries. Bilateral trade between the two countries has always focused on the textiles and apparel sector. From 2000-2020, China's textile and apparel exports to Russia increased from $1.11 billion to $7.65 billion. Its exports to Russia increased by almost six times over the past 20 years,

In 2021, China exported 2.2 of its total textiles and apparels to Russia. Apparels dominated China’s exports to Russia from 2017 to 2021. Its’ apparel exports to Russia doubled as compared to textiles in 2021. One of China’s top five export markets till 2019, Russia’s position has declined in the past two years.

Ukraine’s share in China’s exports declines

From 2019-2021, China’s textile and apparel exports to Ukraine increased from $680 million to $760 million. They accounted for about 35-40 per cent of Ukraine's imports. Ukraine accounted for 0.23 per cent of China’s total textile and apparel exports in 2021 despite China being the largest source of textile and apparel imports for Ukraine.

With a total annual export value of $400 million, Ukraine mainly exports textiles and apparels to Germany, Denmark and Italy. The country is the fabric distribution center of Central and Eastern Europe with the Odessa market being the largest and most concentrated fabric market. Around 55 per cent-70 per cent of Ukraine textile and apparel products are sold in the domestic market and the remaining 30 per cent-45 per cent are exported

Shipments to Russia suspended indefinitely

The war has made textile and apparel shipments to both Russia and Ukraine difficult. Shipping companies Maersk, Mediterranean Shipping, Dafei, Hebrot, etc have suspended shipments to Ukrainian ports from February 24. They also plan to stop accepting new bookings in and out of Ukraine until further notice. Exports to Russia have also been affected with shipments to the Sea of Azov suspended until further notice.