China's apparel exports in the first seven months of 2026 totaled 89.45 billion USD, up 1% year-on-year, with July alone surging 8.5% to 16.45 billion USD. While the headline figure signals a rebound from the negative growth seen in the first half, a closer look reveals sharp divergences across products, markets, and regions—factors that should guide sourcing and export strategies for the remainder of the year.
Product Divergence: Functional Wear Leads
Knitted garments were the main growth driver, with exports of 41.14 billion USD, up 2.5%. Within this, chemical-fiber knitted garments rose 3.4% to 21.65 billion USD, while cotton knitted items edged down 0.1%. Woven garments declined 1.8%, but the contraction narrowed by 1.9 percentage points; chemical-fiber and cotton woven dropped 1.7% and 3.8%, respectively. Notably, plastic and rubber garments and accessories surged 21.2%, reflecting rising demand for outdoor and functional apparel—a signal for fabric suppliers to invest in technical textiles.
Category-wise, coats and down jackets fell 10.5%, remaining the worst performer, though the decline is moderating. In contrast, suits, babywear, sportswear, swimwear, scarves, and ties posted positive growth, while bras, underwear, and dresses saw declines. This suggests that traditional basic orders are shifting toward high-value or niche segments. Buyers relying on conventional woven winter wear should reconsider their product mix.
Market Restructuring: US Share Loss and Emerging Gains
Export market performance diverged sharply, reflecting global supply chain realignment. Exports to the US reached 21.23 billion USD, up 13.8%, but China's share in US imports fell to 11.4%, down 4.6 percentage points, while Vietnam's rose to 20.7%. This paradox indicates that growth was driven by price or premium categories, not volume, as tariffs push orders to Southeast Asia. The EU market grew 1.3%, turning positive, but the removal of the cross-border small-package duty-free policy will pressure e-commerce channels. Japan saw a slight 1.2% decline, yet China still holds a 46.8% share, maintaining dominance.
Emerging markets were a bright spot: Russia surged 42.4%, Africa grew 21.4%, and Australia posted modest gains. However, ASEAN, Latin America, the Middle East, and South Korea all declined, showing that emerging markets are not monolithic. For exporters, relying on a single market is increasingly risky; a multi-region customer portfolio is essential.
Regional Divergence: Zhejiang Leads, Inequality Intensifies
Domestic export concentration strengthened. Zhejiang topped with 24.63 billion USD, up 12.1%, accounting for 27.5% of the national total. Guangdong grew 6.4%, while Jiangsu, Shandong, Xinjiang, and Fujian declined. Hainan, Shanxi, and Heilongjiang saw explosive growth, whereas Guangxi, Hubei, Sichuan, and Hunan experienced sharp drops. This unevenness highlights the pull of industrial clusters and suggests that traditional central and western apparel regions are not benefiting from order recovery, risking idle capacity.
Factories in declining provinces should proactively connect with supply chains in Zhejiang or Guangdong, while buyers can leverage regional differences to balance cost and lead time.
Outlook: External Risks Intensify
The second half faces a tough external environment. Layered US tariffs and the EU's removal of the small-package duty exemption accelerate supply chain restructuring, with trade friction risks rising. July's strong growth is encouraging, but the recovery is fragile given category and regional imbalances. Companies must monitor policy shifts, strengthen compliance, and plan for tariff-related cost volatility.