Meaghan Tobin

Yes. Which is why I went to Guangzhou, a city in the southeast that is in many ways the heart of the global garment industry. It's where many of Shein's hauls are made. And I wanted to go there to see what the end of this loophole means for the millions of people who work in this industry. And ultimately what it means for the fate of fast fashion.

Yes. Which is why I went to Guangzhou, a city in the southeast that is in many ways the heart of the global garment industry. It's where many of Shein's hauls are made. And I wanted to go there to see what the end of this loophole means for the millions of people who work in this industry. And ultimately what it means for the fate of fast fashion.

So the thing you need to know is that China makes nearly one in every three garments sold around the world. Wow. And much of that comes from Guangzhou in the factories that are part of the Xi'an network. And in a lot of ways, this city is really the global hub of garment manufacturing. And I wanted to see what the impact of the end of the de minimis loophole was going to be on the ground here.

So the thing you need to know is that China makes nearly one in every three garments sold around the world. Wow. And much of that comes from Guangzhou in the factories that are part of the Xi'an network. And in a lot of ways, this city is really the global hub of garment manufacturing. And I wanted to see what the impact of the end of the de minimis loophole was going to be on the ground here.

So my colleague C. Zhao and I went to Guangzhou to check it out. Many of the garment factories in Guangzhou are essentially open-air workshops. They're like big warehouses with garage doors that open onto the street. And they're full of sewing machines that are clacking away at all hours of the day and night. And different workshops have different functions.

So my colleague C. Zhao and I went to Guangzhou to check it out. Many of the garment factories in Guangzhou are essentially open-air workshops. They're like big warehouses with garage doors that open onto the street. And they're full of sewing machines that are clacking away at all hours of the day and night. And different workshops have different functions.

So some places might assemble whole garments and other places will just sew on zippers and ruffles.

So some places might assemble whole garments and other places will just sew on zippers and ruffles.

this kind of informal market where a lot of the workshops go to recruit their labor for the day. And hundreds of managers from different factories were lined up on the sidewalk looking for people to do different sewing tasks all day long.

this kind of informal market where a lot of the workshops go to recruit their labor for the day. And hundreds of managers from different factories were lined up on the sidewalk looking for people to do different sewing tasks all day long.

So some places are putting together the main seams of a garment, and then down the street is a place that will sew in the zippers, and another one that will do the elastic waistband. And then there's a different company that will come and pick up the packages and bring them to a collection point.

So some places are putting together the main seams of a garment, and then down the street is a place that will sew in the zippers, and another one that will do the elastic waistband. And then there's a different company that will come and pick up the packages and bring them to a collection point.

So all over the city, you can see trucks that are piled high with rolls of fabric just rocketing down the street. And at the same time, they're being passed by guys with carts and driving vans who are collecting the finished products and taking them to the airport. So there's this whole ecosystem of businesses that are all interconnected in the task of making clothes as quickly as possible.

So all over the city, you can see trucks that are piled high with rolls of fabric just rocketing down the street. And at the same time, they're being passed by guys with carts and driving vans who are collecting the finished products and taking them to the airport. So there's this whole ecosystem of businesses that are all interconnected in the task of making clothes as quickly as possible.

If you can imagine that assembly line spread over an entire city, that is essentially what it is like. So you've got just whole neighborhoods that are geared toward the production of clothes. And This industry is a really important part of the economy there. It employs millions of people, and a lot of them are migrant workers who come to the city from all over China.

If you can imagine that assembly line spread over an entire city, that is essentially what it is like. So you've got just whole neighborhoods that are geared toward the production of clothes. And This industry is a really important part of the economy there. It employs millions of people, and a lot of them are migrant workers who come to the city from all over China.

So we talked to managers and workers, and what they told us is that business was already down. In the month of April, Xi'an was putting in fewer orders in anticipation of the loophole being closed.

So we talked to managers and workers, and what they told us is that business was already down. In the month of April, Xi'an was putting in fewer orders in anticipation of the loophole being closed.

And because of that, factories were hiring fewer workers. Some people said they were considering moving their factories to other provinces where they thought they could pay workers less, or even out of the country to places like Vietnam. And many of the people we spoke to had actually seen nearby businesses close down. Now, we were in Guangzhou on the day the loophole closed.

And because of that, factories were hiring fewer workers. Some people said they were considering moving their factories to other provinces where they thought they could pay workers less, or even out of the country to places like Vietnam. And many of the people we spoke to had actually seen nearby businesses close down. Now, we were in Guangzhou on the day the loophole closed.