One out of every five sweaters worldwide comes from Dalang, Dongguan. This wool-knitting town, with an annual transaction volume exceeding 72 billion yuan, hosted the 95th International Wool Congress on June 24. Data released at the event paints a nuanced picture of China's textile industry: profits of above-scale enterprises surged 19.3% year-on-year, yet revenue edged down 0.3%. Textile and apparel exports reached $116.73 billion, a mere 0.1% increase.
This contrast reveals a deeper truth: the industry is moving away from pure scale expansion toward a new model of systemic competitiveness built on R&D, digitalization, and green manufacturing.
Manufacturing: Profit Growth Amid Revenue Decline
The divergence between profit growth and revenue decline suggests rising value-add and effective cost control. Public data shows R&D intensity for above-scale enterprises rose from 1% at the end of the 13th Five-Year Plan to 1.3% in 2024. While modest by tech standards, this translates into billions of yuan annually flowing into new materials and processes.
More telling is the digitalization rate of 63.2% across key industry links, above the national manufacturing average. At Jiangsu Yueda Textile's 'Lighthouse Factory,' smart manufacturing reduced labor per 10,000 spindles by about 70%, quadrupled labor productivity, cut energy consumption by 15%, and lowered processing costs by 26%. Such efficiency gains directly boost profit margins even without significant order growth.
Fixed-asset investment in chemical fiber fell 14.5%, and apparel investment dropped 10.3%, while overall textile investment grew 10.8%. This divergence shows capital flowing from low-value garment making into intermediate goods like fabrics and yarns, consistent with export data showing textile exports up 1.7% and apparel down 1.6%.
Technology: AI and Synthetic Biology Reshape Boundaries
The congress theme 'Intelligent Weaving the Future' is no empty slogan. The global AI market is projected to reach $757.58 billion in 2025, up 18.7%. In textiles, AI applications extend from design to full production chains. Semir's AI-assisted design system boosted R&D efficiency by 35% and pattern design efficiency by over 200%; Bosideng's AI aesthetic brain cut sample development costs by over 60%.
These cases underscore a key judgment: AI is no longer a concept but a tool directly altering cost structures. For clusters like Dalang or Keqiao, AI penetration will accelerate their transformation from manufacturing bases to intelligent hubs.
Meanwhile, China's high-performance fiber capacity accounts for over one-third of the global total, with applications expanding beyond traditional textiles into aerospace and marine engineering. The competitive dimension is shifting from tonnage to premium quality and technological barriers.
Branding: From OEM to Ecosystem Value Leap
Brands like Anta and Shein have entered the GYBrand World Top 500. Hengli and Erdos have deepened global cooperation through cross-border M&A. Anok's layout from dyes to inks, digital printing, AI design, and IP cultural products exemplifies the ecosystem model. Such cross-industry integration embodies systemic competitiveness, enhancing risk resilience and pricing power.