Readymade Garments Exports to China Halve in 2025/26

According to Nepal Rastra Bank’s latest trade data, Nepal’s readymade garments exports to China have seen a dramatic contraction in 2025/26, falling by 50.6% year-on-year. Once a steadily growing export item, readymade garments now face shrinking demand in the Chinese market.

In 2024/25, Nepal had exported Rs. 150.4 million worth of garments to China. However, by 2025/26, this figure plummeted to just Rs. 13.3 million in one month’s data, indicating a deep structural problem. Analysts attribute this decline to a mix of factors: rising competition from low-cost producers like Bangladesh and Vietnam, China’s shift toward domestic apparel manufacturing, and logistical disruptions at Rasuwa and Tatopani customs.

The fall is especially worrying because the garment sector has long been a source of foreign exchange and employment, particularly for women workers. With exports halving, Nepal risks losing its foothold in the Chinese market unless it diversifies export destinations, upgrades garment quality, and improves supply chain efficiency.