Slowdown in Guangzhou, the Fast Fashion Capital

Guangzhou, China, known as the heart of the global fast fashion industry, is facing a slowdown. In its urban villages, millions of workers produce cheap clothing in informal workshops, often earning between one and ten yuan per piece.

While overseas orders, particularly from the US, keep factories open, the trade war between the US and China has created uncertainty. Tariffs and trade restrictions are affecting the ability of Guangzhou workers to sell clothes to Americans.

Yang Ruiping, the owner of a small clothing factory in Panyu, reports that his exports have decreased significantly. Shein, a Singapore-based company, has emerged as a major player, allowing small manufacturers to sell directly to Western customers. However, the elimination of a customs regime in the US has increased Shein's prices by 23%.

Experts express concerns that the uncertainty of the trade war could worsen working conditions. Meanwhile, Beijing is focusing on high-tech industries, leaving behind the traditional garment industry.