Nike challenger says quarter of China's sportswear factories are idled

In China, international brands like Nike are shifting sourcing overseas due to US President Donald Trump's trade policies.
In China, international brands like Nike are shifting sourcing overseas due to US President Donald Trump's trade policies.PHOTO: AFP

HONG KONG (BLOOMBERG) - A quarter of Chinese production capacity used by global sportswear brands is lying idle, according to a manufacturing executive, as the protracted trade war pushes the biggest sports labels out of the Asian nation's factories.

The exodus is forcing factories to offer discounts of 10 per cent to companies such as his to use their dormant production lines, Xtep International Holdings Ltd chairman Ding Shui Po said in an interview with Bloomberg in Hong Kong. The sportswear label is one of a handful of Chinese brands competing with the likes of Nike and Adidas.

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