Due to multiple policy and market factors such as the appreciation of the RMB, the reduction of export tax rebates, and the rise in labor and raw material prices, the profit space of textile and clothing export enterprises has been severely squeezed since 2007, with most enterprises on the edge of meager profits or losses. The impact of the US subprime crisis is still ongoing, and the US dollar zone economy is sluggish, significantly suppressing demand for textile and clothing. Since the beginning of this year, the export performance of China is textile and clothing products to the United States has been consistently sluggish. Except for the growth in March due to the influence of the Spring Festival, the growth rate in other months has been below 2% or even negative

Industry insiders have stated that the export growth rate of textile yarn, fabrics, and products is significantly faster than that of clothing exports, reflecting the significant impact of the relocation of China is clothing processing links. The analysis report released by the General Administration of Customs recently stated that in recent years, countries such as India, Vietnam, Cambodia, and Bangladesh have all regarded the textile and clothing industry as important supporting industries, with stronger labor cost advantages. China, especially Guangdong textile enterprises, have accelerated their relocation. Currently, more than 400 Chinese textile enterprises have invested and established factories in Cambodia, and nearly 100 have also arrived in Bangladesh.