The Global Textile Value Chain Transformation: Impact of COVID-19 Lockdown on China's Dominance and the Shift to Other Asian Countries
This research investigates the ramifications of the COVID-19 lockdown on China’s position in the global textile value chain. It examines whether there was a discernible redistribution of textile business from China to other Asian countries during the pandemic. Through an extensive analysis of trade data, supply chain dynamics, and industry trends, this thesis explores the transformative dynamics of the global textile industry in response to the prolonged disruption in China’s textile production caused by the pandemic.
The pandemic emerges as a significant disruptor causing profound implications on various aspects of the global economy including international trade. The research delves into the timeline of the pandemic’s spread, emphasizing China’s early response with strict lockdown measures in Wuhan, the outbreak's epicenter.
The vulnerabilities exploded in the global supply chain, with China at the production center and distribution, prompting discussions around diversifying supply chains and reducing reliance on a single manufacturing hub. The thesis explored the concept of decoupling from China and the subsequent shift of manufacturing activities to other countries, particularly in Southeast Asia, Eastern Europe, and Latin America.
Overall this research contributes to the understanding of the multifaceted impacts of the COVID-19 pandemic on global value chains and international trade with a specific focus on the textile industry and imports from China. By unraveling the intricate dynamics and challenges faced by various stakeholders, this study provides valuable insights for policymakers, businesses, and scholars navigating a rapidly evolving global trade landscape.