One out of every five sweaters globally is produced in Dalang, Dongguan, a wool knitting cluster with an annual trade volume exceeding 72 billion yuan. On June 24, this cluster hosted the 95th International Wool Textile Organization (IWTO) Congress, jointly organized by the China Wool Textile Association and the Dongguan Wool Textile Association, attracting delegates from over 20 countries. The core agenda shifted from simple trade matchmaking to a deep game around green transformation, global supply chain collaboration, and standard-setting power.
Green Paper Launch: A Battle for Standards and Narrative
The most critical agenda was the global launch of the IWTO Wool Green Paper. This document is positioned as a key lever for industry transformation, addressing the policy and public opinion dilemmas facing the wool sector. According to publicly available industry data, existing studies have been accused of exaggerating wool's negative environmental impact, misleading younger consumers about animal husbandry. The Green Paper aims to establish a full value chain traceability data system, from raw material to finished garment, and develop region-specific carbon footprint accounting standards. This means wool's environmental value will no longer be defined unilaterally by external bodies but substantiated by the industry itself through standardized data. For buyers, these standards will directly affect future procurement costs and compliance thresholds.
The Dalang Model: From OEM to Global Innovation Hub
Dalang's 40-year evolution mirrors China's textile industry transition from contract manufacturing to branding and smart manufacturing. It now boasts a complete ecosystem from raw material processing to garment design and commercial distribution, producing over 900 million garments annually. The town's party secretary explicitly stated that Dalang is proactively adapting to new trends in technology, culture, and green development. This signals that Dalang is no longer content as the world's 'knitting workshop' but aims to become a global innovation hub for wool knitwear through intelligent and green manufacturing. For foreign trade companies, Dalang's trajectory sends a clear signal: pure production capacity is being replaced by technical standards and brand value.
Supply Chain Uncertainty and the Source of Resilience
Sun Ruizhe, President of the China National Textile and Apparel Council, noted in his report that China's textile industry is providing certainty for global industrial stability. While trade protectionism impacts supply chains, Dalang's industry has shown strong resilience. This resilience stems from the agglomeration effect of a complete industrial chain—from fiber and yarn to garments, all within tens of kilometers—and sustained investment in digitalization and green initiatives. Deng Xiaoding, an official from the Ministry of Industry and Information Technology, proposed four points: using standards as a common industry language, innovation as an engine for digital transformation, greenness to highlight natural fiber value, and openness to build a mutually beneficial global ecosystem. These points essentially draw a new framework for global wool industry cooperation.
The Wool Youth Project: Long-term Investment in Chain Collaboration
The Congress featured a special session for the Wool Youth Project, where dozens of young delegates from various countries introduced their businesses. This project aims to provide newcomers with a cross-border platform to build networks and consolidate the industry chain. Behind this initiative lies the industry's clear recognition of a talent gap—wool is not just an ancient craft but a legacy needing generational succession. Against rapid technological change, young professionals' understanding of new materials, digital marketing, and sustainable supply chains will become a hidden driver of industry upgrade.
Practical Recommendations
For Buyers - Closely monitor the IWTO Wool Green Paper's forthcoming carbon footprint accounting standards, as they will directly impact compliance costs and supplier selection for wool raw materials. - Prioritize suppliers with full value chain traceability, especially as EU environmental regulations tighten; data transparency will become a hard requirement. - Keep an eye on products from clusters like Dalang, where smart manufacturing is rapidly improving, potentially offering cost-performance advantages.
For Foreign Trade Companies - Proactively align with the carbon footprint accounting framework under the Green Paper and secure low-carbon certifications early to avoid trade barriers from standard discrepancies in future exports. - Leverage the complete ecosystem of clusters like Dalang to shift from pure OEM to integrated 'raw material + technology + brand' service offerings, enhancing value-added and bargaining power. - Participate in industry youth projects or cross-border exchanges to build a cross-regional network, mitigating uncertainties from supply chain fragmentation.
Conclusion
The 95th IWTO Congress's core outcome is not a simple industry gathering but a systemic layout concerning standards, narrative, and the industry's future. For China's wool sector, the Dalang case demonstrates that the leap from 'manufacturing' to 'standard-setting' is the only way to counter trade protectionism and consumption shifts. The launch of the IWTO Wool Green Paper signals that the battle for wool's environmental narrative has officially begun.