One belt one road (OBOR) project initiated by China will be the most significant and impactful project in the world in next two decades. This project is inspired by ancient silk route go through China to Europe. This will impact macro-economic environment of international business by changing new multinational trade corridors. In perspective of china, this initiative bring great opportunity to China to become the leader of the world economy. Further, regional countries also can get economic advantages from the project by being part of it. However, there are some risks associated with the project such as foreign investment restrictions, local employment and environment risks, political issues in some jurisdictions to achieve the expected results. Even thought, there are many challenges, the successful implementation of huge infrastructure and commercial projects is still a prize worth the challenges. Countries which are located through the route will have better opportunity to achieve huge economic growth by connecting Asia’s vibrant economy with the developed Europe’s economy. OBOR impacts to change industries worldwide. Textile industry is one of them which is very important considering Sri Lanka context. Apparel industry is the highest foreign exchange earner of Sri Lanka which account 40% of the total export. This study explain the international business implications for textile and fashion industry.
Last decade, international trade of China grow dramatically. International trade volume between China and other “belt and road” countries achieved USD 1,440 billion in 2017 and it has increased 13.4% compared to 2016 (Daily News, 2019). Textile and fashion industry play important part in Europe and Asia considering designing, producing and retailing aspects. Considering China market, china’s main exporters in the textile industry are Russia, South Korea and Kyrgyzstan. All these countries are “belt and road” countries. This project create new opportunities for textile manufactures. Wages level of China has been raised and companies are looking for low cost options and move their productions to South Asia and Southeast Asia. According to International Trade Center (ITC), main textile raw material exporters from china are also South Asian countries such as India, Bangladesh, Pakistan and Sri Lanka and Southeast Asian countries such as Vietnam, Philippines and Cambodia (Jiang, 2018). All these counties are located along the route. Currently, despite challenges such as increasing domestic wages, China still remains as the biggest exporter of the textile sector in worldwide. On the other hand, there are higher demand for
luxury garments and products in China. China is the world’s largest market for the luxury products which cover 50% of the global purchases.