Life Cycle Blue and Grey Water in the Supply Chain of China’s Apparel Manufacturing

Apparel manufacturing involves high water consumption and heavy water pollution in its supply chain, e.g., planting cotton, producing chemical fibers, and dyeing. This study employs a multi-regional input–output (MRIO) model to (1) assess the life cycle of blue and grey water (chemical oxygen demand (COD) specific) of China’s apparel manufacturing; (2) reveal the hidden linkage among sectors and regions in the whole supply chain; and (3) identify the key regions and upstream sectors with the most water consumption and heaviest water pollution. We found that the agricultural sector (i.e., planting fiber crops) is responsible for primary water consumption and water pollution. In addition, different provinces assume different production roles. Guangdong is a major output province in apparel manufacturing. However, its economic output is contributed to by other regions, such as blue water from Xinjiang and Jiangsu and grey water from Hebei and Shandong. Our research reveals the significance of taking an inter-regional perspective on water resource issues throughout the supply chain in apparel manufacturing. The sustainable development of China’s apparel manufacturing relies on improving water-use efficiency and reasonable industrial layout. The results are of significance and informative for policymakers to build a water-sustainable apparel industry.