The latest Covid outbreak sweeping China has begun impacting the global textile and apparel supply chain.

This has raised uncertainty over production delays and factory closures.The Omicron variant of the Covid virus is making its way across several big cities in China after the country made a U-turn on its former zero-Covid policy of containment earlier this month.The spread of infections, which has hit China’s capital city Beijing the most, is threatening widespread business disruption to the world’s second-largest economy and largest apparel exporter.

More than half the population has been infected. The increase in infection rates means industry across China is facing disruption such as staffing shortages, which is leaving businesses vulnerable to closures, while sickness in the logistics sector is causing supply chain chaos.One imminent challenge is a nationwide labour shortage, production delays, and even factory closures as Covid cases surge.

When Covid first broke out in China in early 2020, garment-exporting countries in Asia struggled to get enough raw textile materials as China was their top supplier. The same situation could repeat this time.Given these mounting uncertainties, fashion brands and retailers are likely to accelerate their China exit strategy and prioritise mitigating supply chain risks in their sourcing decisions.