One in five sweaters globally comes from Dalang, Dongguan. This wool town hosted the 95th International Wool Congress in late June, sending a clear signal: China's textile industry is shifting from scale advantage to paradigm leadership.
Data-Driven Resilience
China National Textile and Apparel Council (CNTAC) President Sun Ruizhe disclosed key figures. From January to April 2024, profits of China's textile enterprises above designated size rose 19.3% year-on-year, while revenue dipped only 0.3%. This indicates margin improvement, not price-driven growth. Retail sales of apparel, footwear, and knitwear above the quota grew 8.1%.
Exports showed structural divergence. From January to May, total textile and apparel exports edged up 0.1%, with textile exports up 1.7% but apparel down 1.6%. Stronger intermediate goods exports underscore China's role as a global supply chain stabilizer. Annual fiber processing exceeds 60 million tons, and garment output tops 70 billion pieces, both accounting for over half of global totals.
These data points suggest a shift from volume to value. Profit growth outpacing revenue indicates rising value-add.
Technological Paradigm: AI and Smart Manufacturing Drive Change
The congress theme, 'Intelligent Weaving Future: Wool's Health and Digital Life,' is grounded in reality. Industry digitalization rate has reached 63.2%, above the manufacturing average. In 2024, 30 textile firms were listed in the 5G factory registry.
Specific cases are compelling. Jiangsu Yueda Textile's 'Lighthouse Factory' reduced labor per 10,000 spindles by 70%, boosted labor productivity fourfold, cut energy consumption by 15%, and lowered processing costs by 26%. Semir's AI-aided design system improved R&D efficiency by 35%, with pattern design efficiency up over 200%. Bosideng's 'AI Aesthetic Brain' reduced sample development costs by over 60%.
These are not isolated pilots. When AI integrates into design, production, and management, competition shifts from cost to intelligence and agility.
Global Landscape: New Paradigm Amid Uncertainty
The IMF downgraded 2026 global growth forecast to 3.1%. Geopolitical tensions, energy volatility, and shipping disruptions create complexity. Yet China's textile stability provides certainty for global supply chains.
Sun noted a new development paradigm driven by intelligent and experience economies. The global AI market reached $757.58 billion in 2025, projected to exceed $900 billion in 2026. China's daily token calls surpassed 140 trillion.
This means computing power, data, and energy replace land and labor as key production factors. Humanoid robot shipments grew 508% year-on-year, and 'digital employees' are entering the workforce. One-person companies and 'handcraft economy' are rising, with new OPC registrations in China up 47% in H1 2025.
Industry Impact: Comprehensive Restructuring
Technology reshapes ecosystems. Anoky builds an AI-powered chain from 'dyes to ink to digital printing to AI design to IP cultural products.' This is no longer a simple textile mill but a data-driven creative platform.
High-performance fiber capacity accounts for over one-third of global total, expanding into aerospace and marine engineering. Brands like Anta and Shein entered the GYBrand World Top 500. Hengli, Weiqiao, and Erdos engage deeply in global cooperation through cross-border M&A.
For buyers, selection criteria expand beyond cost to include digital capability, green manufacturing, and agility. For factories, transformation is survival. For traders, intermediate goods export growth offers opportunities but requires precise matching of technical needs.