Tadashi Yanai, Chairman and President of FAST RETAIL-DRS (06288.HK)  0.000 (0.000%)   , the parent company of Japanese fast fashion giant Uniqlo, said in an interview with Nikkei Asia that production in China remains a crucial part for fashion retailers despite the trend of de-globalization.

FAST RETAIL-DRS has grown alongside the Chinese textile industry, and the importance of China, including its mainland-managed factories, has not changed, Yanai added.

Multinational companies, including American tech firms, are advancing the "China+1" strategy to diversify investments into markets outside China, such as India and Vietnam. Yanai explicitly rejected the "China+1" strategy in the interview, noting that there is no simple way to establish large factories in other countries to replace Chinese production, as FAST RETAIL-DRS has already accumulated years of experience in China. Vietnamese factories cannot operate as well as Chinese ones unless a large number of Japanese employees are sent from the headquarters in Japan to supervise in Vietnam.
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