Rising costs in China are forcing an increasing number of Western apparel brands and retailers to cut back on their sourcing from China and have their apparel manufactured elsewhere. At the same time, a number of Western apparel brands and retailers are expanding their retail operations in China in order to capitalise on an expected upsurge in domestic demand. The rise in costs in China stems in part from significant increases in fuel costs and shipping costs. Also, wage rates have risen to the point where they are higher than in many other Asian countries. Labour costs in the Chinese textile industry averaged US$2.10 per hour in 2011—the latest year for which data are available—compared with only US$1.08 per hour in Indonesia, US$1.06 per hour in India, US$0.60 per hour in Vietnam and US$0.58 per hour in Pakistan.
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