During the Republican era, Western clothing began to come into vogue.
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洋服 is somewhat dated; 西装 ("Western suit") is the standard modern term. 洋服 still appears in literature, period dramas, and Cantonese-speaking regions, evoking early 20th-century China when Western dress contrasted with 中装 (Chinese clothing).
history
洋 ("ocean / overseas") was the late-Qing prefix for anything imported: 洋火 (matches), 洋灰 (cement), 洋服 (Western suit). Many of these terms have been replaced by neutral modern equivalents as the foreign-import association faded.