> sheep have to be sheared

Not sheep raised for meat, bred to be low wool volume producers, and regularly (two or three times a year) run through a defoliating spray.

See, for example: https://farmtable.com.au/ag-library/ag-business-resources/se...

FWiW, in the actual sheep for wool trade there's still a high demand in China for ultrafine low micron merino wool for modern high end breathable suits. So:

> Then, everything closed and the only thing left was to send it to China.

really depends on the grade and quality of the wool - a lot is low grade rag fibre for stuffing and insulation, some (many tonnes per annum) is for quality tailoring.