Azernews.Az

Amid bolts of silk and shimmering tweed at Keqiao Textile City—China's sprawling fabric marketplace—exporter Cherry anxiously awaits the outcome of this weekend's trade negotiations between China and the United States.

Her business, which relies on American buyers for nearly half its revenue, has already been hit hard by canceled orders, a consequence of escalating trade tensions and mounting tariffs between the two global powers. The upcoming Geneva talks are seen as a critical moment that could ease the burden on Chinese exporters.

"If this continues, the consequences will be severe," Cherry warned, casting doubt on claims that the textile industry can survive prolonged trade restrictions. She noted that some manufacturers have already shut down operations after order cancellations mounted in recent months.

In 2024, the US accounted for 18% of China's total textile and apparel exports, according to Moody’s Ratings. Much of that output comes from Zhejiang province, home to Keqiao in Shaoxing—a dense maze of over 26,000 fabric shops and one of the world’s most active textile markets.

Yet on a recent rainy day, the marketplace was eerily quiet. Vendors stood idle, grappling with economic uncertainty. “I’m definitely worried,” said Ms. Li, another vendor, who pointed to global instability already taking a toll on business.