Restrictions on China under the multi-fibre agreement have been the source of some controversy within the EU. When China learned of the new requirements, it increased its exports exponentially to exceed the time frame before these new rules were implemented. The number of products delivered was so high that it eclipsed the annual quota, which led to shipments to EU ports. Finally, a diplomatic solution was found. 7. The dynamics of the value chain in the textile and apparel sector value chains describe the dynamism of value-creating activities throughout the production cycle of a product or sector. Value chain analysis thus identifies, during a production cycle, economic operators who are able to exert a decisive influence on production activities, including procurement, logistics, distribution and pricing. While the concept of value chains originated in the 1960s and 1970s, when analysts used it to describe the development trajectory of extractive economies, this form of analysis was not popularized by Michael Porter until the mid-1980s and applied to broader sectoral analysis. Value chain theory also challenges the traditional view that value is primarily valued in the production process of a good and shows that design, marketing, branding and product distribution are often much more important. In addition, it is recognized that in an increasingly globalized and interconnected economy, production and production decisions often take place at a given time at different sites. This is especially true for the textile clothing pipeline.
The concept of value chains has different dimensions, including the entry-exit structure (which includes the five elements: design, input, production, wholesale trade and retail), spatial riots (the geographical dimensions of the above elements) and control of activities (which include the influence that different actors can extend on the value chain) (Gereffi: 1994). Each of these concepts is important for understanding the dynamics within a sector. While the input-exit structure ranks the main generic elements of a value chain, the spatial scale defines the location characteristics of an area. In the field of “Tex-clo”, for example, in the United States of Europe, it is possible to develop a clothing and fabric model that is attributed to a South African company, which in turn can outsource certain stages of production to producers based in Lesotho or Swaziland. The third approach, influence and control of activities within a given value chain, is essential. Value chains are generally classified as manufacturers or buyers, with the textile and clothing sector becoming a typical example of the latter. Manufacturers` value chains are generally found in capital-intensive and technology-intensive sectors such as automotive or it.