One in every five sweaters worldwide comes from a single Chinese town—Dalang, Dongguan. This knitting hub, with an annual transaction value exceeding 72 billion yuan and garment output over 900 million pieces, hosted the 95th IWTO Congress in late June. Delegates from over 20 countries gathered, shifting focus from traditional orders and pricing to carbon footprint accounting, supply chain traceability, and green transformation pathways.
Industry Coordinates: Dalang's Leap from OEM to Standards
After more than four decades of development, Dalang's wool industry exports to over 100 countries. Its evolution from OEM to own brands and from single production to a complete ecosystem covering raw material processing, design, manufacturing, and trade mirrors the collective upgrade of China's wool sector. Sun Ruizhe, President of the China National Textile and Apparel Council, noted in his keynote that China's textile industry is serving global markets through innovation, and the wool segment, representing quality and value, has become a must-have for global fashion brands.
Data-wise, China holds the world's largest wool processing capacity, importing large volumes of raw wool and exporting various wool products. Despite trade protectionism impacting supply chains, Dalang's industry shows strong resilience. This means for buyers, the stable supply from Chinese wool bases remains a certainty in global sourcing strategies.
Green Transformation: The IWTO Green Paper and Industry Dynamics
The Congress's centerpiece was the global launch of the IWTO Green Paper on wool. The background is telling: some existing data allegedly exaggerates wool's negative environmental impact, leading to misconceptions among younger urban consumers. The Green Paper aims to establish a unified industry-wide traceability data system, develop region-specific carbon footprint accounting standards, and strengthen policy influence with the EU.
Currently, only a few enterprises participate in the Green Paper project. The industry urgently needs a unified global voice and resource commitment from companies across nations. For factories, this means wool products destined for the EU market may face stricter carbon footprint certification requirements. Early adopters of carbon accounting systems will gain an edge in trade negotiations.
Supply Chain Collaboration: From Highland Pastures to Global Shelves
The Congress highlighted the human and natural dimensions of the wool supply chain. Thanawat Tiensin, FAO Assistant Director-General, noted in his video address that behind every wool fiber is a farming family caring for livestock and land. A case study from Tibet's Zhuofanlin Cultural Company demonstrated how highland yak down and local wool can be sustainably sourced through a 'platform + workshop + school' model, balancing intangible cultural heritage preservation with sustainable supply chains.
This 'from pasture to garment' full-chain collaboration is becoming a new industry paradigm. For trading companies, products with complete traceability stories and low-carbon certifications can command higher premiums in European and American markets. Dalang has already taken the lead in empowering its industry through technology, culture, and green initiatives, inviting global partners to deepen cooperation in raw materials, technology, brands, and platforms.
Youth Power and Standard-Setting Influence
The Wool Youth Project made its debut at the Congress, with dozens of young representatives from various countries introducing their businesses. The project aims to help newcomers cross geographical boundaries, build networks, and unite the industry chain. This reflects the sector's focus on talent development—wool is not just an ancient craft but a legacy worth passing down.
Meanwhile, the battle for standard-setting power is intensifying. Deng Xiaoding, a senior official from the Ministry of Industry and Information Technology, proposed four directions: using standards as a common industry language; leveraging innovation for digital transformation; highlighting natural fibers' health value through green credentials; and pursuing openness for mutual benefit. This means future participants in international wool trade will need to compete not only on price and quality but also on their depth of integration into standards systems for carbon footprint, traceability, and sustainability certification.