Trade war pushing biggest sports labels out of China's factories

The exodus of global sportswear labels is forcing Chinese factories to offer discounts for the use of their idle production lines, says Mr Ding Shui Po, chairman of sportswear maker Xtep. He adds that for China's sportswear exports industry, the grow
The exodus of global sportswear labels is forcing Chinese factories to offer discounts for the use of their idle production lines, says Mr Ding Shui Po, chairman of sportswear maker Xtep. He adds that for China's sportswear exports industry, the growing local market can partially make up for waning foreign demand.PHOTO: AGENCE FRANCE-PRESSE

HONG KONG • A quarter of Chinese production capacity used by global sportswear brands is lying idle as the protracted trade war pushes the biggest sports labels out of China's factories, said a manufacturing executive.

In an interview with Bloomberg in Hong Kong, Xtep International Holdings chairman Ding Shui Po said the exodus is forcing factories to offer discounts of 10 per cent for companies such as his to use their dormant production lines.

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A version of this article appeared in the print edition of The Straits Times on August 27, 2019, with the headline 'Trade war pushing biggest sports labels out of China's factories'. Print Edition | Subscribe