Key facts
- Japan's textile product imports from China dropped below 50% in 2025.
- This is the lowest share recorded in 31 years.
- Companies are increasingly sourcing from Southeast Asia.
- The shift is attributed to higher labor costs and geopolitical risks associated with China.
Japan's reliance on China for textile product imports has fallen to its lowest point in 31 years, with China's share dipping below 50% in 2025. This significant shift is driven by companies, including suppliers for major brands like Uniqlo, seeking to mitigate rising labor costs and geopolitical uncertainties associated with China. As a result, production is increasingly being redirected to Southeast Asian nations such as Vietnam and Indonesia, where manufacturers like Matsuoka are expanding their operations. This diversification strategy aims to create a more resilient and cost-effective supply chain, moving away from the concentrated risks previously associated with manufacturing solely in China.