GENEVA — Spiraling energy and freight costs coupled with rising wages and other expenses in China's Pearl River Delta, the world's premier textile and apparel manufacturing hub, are spurring the relocation of factories to lower-cost Asian countries and a rethinking of sourcing plans to places closer to key home markets.
In contrast to the days of global quotas when firms moved around from country to country to secure access to restricted markets, relocation today is largely driven by increasing costs.
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