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China gains foothold in the US textile market

Chinese yarn companies are gaining a foothold in the lucrative US market because the Pacific trade agreement led by the US that excludes China. China, is now setting up shop in the US and boundaries are increasingly getting blurred between high and low-cost manufacturing nations. With years of rising wages, higher energy bills and mounting logistical costs, and new government quotas on cotton imports, textile production in China is becoming unprofitable. Simultaneously, manufacturing costs in the US are becoming more competitive.

Beijing and Washington resumed trade relations in the 1970s and since then, the US has mostly run a trade deficit. This is because Americans consumed billions of dollars in cheap electronics, apparel and other goods made in China. However, a rise in labour and energy costs in China is impacting the country’s competitiveness in manufacturing. Manufacturing wages adjusted for productivity have almost tripled in China over the last decade, to an estimated $12.47 an hour in 2014 from $4.35 an hour in 2004, as per the Boston Consulting Group. Also, some types of manufacturing is shifting to low-cost countries such as India, Bangladesh, and Vietnam, due to rising costs in China.

There are at least 20 manufacturers in the Carolinas now that includes Keer and Sun Fiber.

 
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