In the first seven months of 2019, US fabric imports from China fell 22.36 per cent in value compared to the same period last year.For the 12 months through July, China’s market share of fabric imports was down to 27.34 per cent as shipments were 7.52 per cent below the previous year. China’s textile exports to the US have gone through a major decline in the last 20 years. Chinese yarn imports into the US dropped 33 per cent year to date through July. Yarn imports for the 12 month-period from China were down 6.13 per cent, leaving China with a 16.79 per cent market share.

Chinese mills seem to have fallen on tough times. Domestic demand is weak, overseas demand is declining and there are general concerns about business volumes. Most factories are absorbing some of the additional US import duties to keep production lines moving. Chinese mills are also expected to rapidly move their production capacity investments offshore. Most Chinese fabric mills are holding prices and, in some cases, making the sale to keep capacities running. There are lots of shifts to Southeast Asia and not just because of the trade war but in general due to a price increase in China. Some domestic Chinese brands are also moving production offshore.