China’s Textile Hubs Strained as Rising Oil Costs and Falling Orders Squeeze Factories

Industry insiders say surging raw material prices tied to Middle East tensions are forcing some Zhejiang factories to the brink of shutdown.
China’s Textile Hubs Strained as Rising Oil Costs and Falling Orders Squeeze Factories
A worker hauls rolls of fabric after unloading them at a warehouse in a textile industrial park in Shaoxing, in China's eastern Zhejiang province on May 9, 2025. Greg Baker/AFP via Getty Images
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Textile manufacturers in eastern China are facing mounting pressure as surging raw material costs collide with falling orders, pushing some factories to the edge of shutdown.

In recent weeks, prices for key inputs used across Zhejiang province’s vast textile sector have doubled, according to industry insiders. At the same time, demand has softened, leaving many companies caught in a squeeze where production costs exceed selling prices.

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Michael Zhuang
Michael Zhuang
Author
Michael Zhuang is a contributor to The Epoch Times with a focus on China-related topics.