This article investigates how Chinese apparel companies have been able to acquire and upgrade knowledge over the last four decades. Based on a broad range of published sources and official data, it identifies the dominant firms that enabled the industry’s dramatic expansion during two distinct phases: export oriented in 1980–2005 and domestic market oriented in 2005–2020. Using the global value chains model, we analyze the varieties of knowledge needed during these two periods and how firms acquired it to boost their competitiveness.

As in other countries, textile and apparel production in Germany is considered a victim of globalization. Domestic production and employment declined dramatically after its postwar peak in the late 1950s. Research has often attributed this trajectory to the trade liberalization policy of the German governments. However, this interpretation is puzzling. German trade policy was not as liberal as is claimed, nor did the industry disappear. This article addresses the issue using statistical evidence as well as archival material. The West German textile and apparel industry was using outward processing strategies comparatively early and was supported in that by German politicians starting in the early 1960s. As a result, the industry moved up the global value chain of textile production.