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China & South East Asia Update nr. 3, 2022

China

  • What China’s 20th National Congress Means for Fashion  – Business of Fashion 
  • China’s textile revenue remails stable in H12022 
  • Chinese supply chains could become entangled in Xinjiang mess, report warns 
  • Brands 'turning their backs on China imports' 
  • Import statistics China

Myanmar

  • Human rights abuse: Marks & Spencer to stop sourcing from Myanmar 
  • Myanmar-Sourcing Brands Between a Rock and a Hard Place
  • Import statistics Myanmar 

Cambodia

  • Garment waste burned in Cambodia 
  • National council to increase minimum wage for garment industry in Cambodia 
  • Import statistics Cambodia


China
What China’s 20th National Congress Means for Fashion – Business of Fashion 
KEY INSIGHTS

  • A spike in Chinese consumer sentiment now looks as unlikely as a sudden influx of Chinese tourists to the shopping hubs of Europe, North America and Asia.
  • Xi’s renewed commitment to common prosperity could signal increased demand for discreet, rather than ostentatious, types of luxury goods consumption.
  • Western brands will continue to be caught in the crossfire as tensions between Beijing and Washington continue or intensify over many long-running disputes.

In markets that are especially opaque, business leaders glean insights from wherever they can. When the market in question is China, a one-party state and the world’s second-largest economy, fashion executives would be wise to listen carefully as the government puts forward its vision for the next five years — even if it is delivered at a ceremony peppered with unfamiliar choreography and ambiguous metaphors. The National Congress of the Chinese Communist Party not only sets the tone for the CCP’s policies and defines its key personnel, but also shapes China’s economic outlook and the market environment in which companies operate. The 20th edition of the event ran from October 16 to 22 and saw around 2,300 delegates flock to Beijing’s Great Hall of the People.All eyes were on president and general secretary Xi Jinping, who as expected secured a precedent-breaking third term, highlighting his consolidation of power across the CCP’s top echelons, reports Business of Fashion. Read more (notice you may need aloging to read the complete article)

China’s textile revenue remails stable in H12022 
Revenues growth from China's textile industry remained stable in the first half of this year, official data showed.Revenues of textile companies with an annual main business income of at least 20 million yuan (about $3 million grew by 5.7 per cent Y-o-Yto 2.52 trillion yuan in the first six months of 2022, , according to the Ministry of Industry and Information Technology, writes FashionatingWorld.

Chinese supply chains could become entangled in Xinjiang mess, report warns 
A new report is urging brands to scrutinise their Chinese supply chains due to concerns that Beijing’s focus on positioning Xinjiang as a manufacturing hub could make it more challenging to decipher whether products are made using forced labour.The report by non-profit organisation C4ADS, which focuses on reporting global conflict and security issues, notes the Chinese government is undertaking a concerted drive to industrialise the Xinjiang Uyghur Autonomous Region (XUAR), which has led to more corporations establishing manufacturing operations there, reports Just-style.com (you may need  login to read the complete article).

Brands 'turning their backs on China imports' 
Western fashion brands are starting to turn their backs on China as a sourcing destination due to issues ranging from the impact of COVID-19 lockdowns to bans on the imports of goods made with forced labour, according to a new study. The report, by Sheng Lu, an associate professor in the Department of Fashion and Apparel Studies at the University of Delaware, stresses that China remains one of the most popular sourcing destinations with many brands committed to the country's internal market.However, it says that many fashion companies have significantly reduced imports of apparel from China which is no longer their top sourcing destination, having been overtaken by rivals such as Vietnam, writes Eco-textile News (notice you may need a login to read the complete article).

Import statistics China

Source: Eurostat/Modint

Myanmar
Human rights abuse: Marks & Spencer to stop sourcing from Myanmar
Clothes are displayed on hangers in an Marks & Spencer shop in northwest London, Britain July 8, 2014. British retailer Marks & Spencer (M & S) is going to stop sourcing apparel items from Myanmar from next year citing the reasons of human rights abuse. At Marks & Spencer, ethical trading is core to the way it does business, the M & S said in a statement released on October 11, 2022, reports Bangladesh neswspaper The Daily star. Read more>>

Myanmar-Sourcing Brands Between a Rock and a Hard Place 
Primark is making a “responsible exit” from Myanmar following an evidence-based assessment that concluded that it “wasn’t possible” for responsible businesses to apply normal human-rights due diligence in the beleaguered Southeast Asian nation, which has been under the boot of military rule since last February. The Ethical Trading Initiative’s (ETI) report, the British discount chain told Sourcing Journal, made for “very difficult reading,” with findings that show a “significant deterioration in the situation in Myanmar which poses significant challenges to our ability to ensure the standards we require to protect the safety and rights of the people who make our clothes and products, reports Sourcing Journal (notice you may need a login to read the complete article).

Import statistics Myanmar

Source: Eurostat/Modint

Cambodia
Garment waste burned in Cambodia 
An investigation by Unearthed, an arm of Greenpeace, and British newspaper the Daily Mail has found that mixed garment waste is being burned across Cambodia to fuel brick kilns, report Ecotextile News and Greenpeace. Read more>>

National council to increase minimum wage for garment industry in Cambodia 
Cambodia’s National Council on Minimum Wage plans to increase the monthly minimum wage for the garment, footwear and travel goods industry for next year. The council recently invited representatives of employers and employees to propose their respective figures for the negotiations as they require more internal discussions, reports FashionatingWorld. 

Import statistics Cambodia

Source: Eurostat/Modint

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