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Garment fraud costs China textile mills billions

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Alleged contract fraud has cost nearly 150 Pearl River Delta garment factories over 1 billion yuan, exposing how thin margins leave Chinese manufacturers dangerously exposed 

China garment mill scene of woman with cotton spools
The fraud case lands amid broader margin pressure across China’s textile and apparel sector.

GUANGDONG – Nearly 150 garment factories across China’s Pearl River Delta have reportedly lost more than 1 billion yuan (around $150 million) in an alleged contract fraud now under criminal investigation, in a case that exposes how thin margins and fragmented supply-chain information can leave manufacturers dangerously exposed.

The case lands amid broader margin pressure across China’s textile and apparel sector.

 

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