One out of every five sweaters in the world is made in Dalan, Dongguan, China. This small town known for knitwear produces over 900 million garments annually, with its entire supply chain transaction volume exceeding 72 billion RMB. These figures, repeatedly cited at the opening of the 95th IWTO Congress on June 24, reveal not just the scale of an industrial cluster, but China's anchor position in the global wool supply chain.
The Logic Behind the Data
Dalan's industrial heft is not an isolated case. China possesses the world's largest wool processing capacity, importing massive quantities of raw wool each year while exporting finished wool products globally. This 'large import, large export' model makes China's wool industry a stabilizer for the global chain. However, rising trade protectionism, shifting consumer preferences, and environmental pressures are reshaping the rules of this traditional industry.
The core signal from the congress is that the wool industry is shifting from scale competition to standards and green competition. The IWTO's launch of the Wool Green Paper is a key tool in this shift. The document aims to establish a unified traceability data system across the entire supply chain, develop regional carbon footprint accounting standards for wool, and promote durability standards. This means future wool product competitiveness will depend not only on price and quality, but also on the traceability and transparency of its environmental footprint.
Green Transition: From Compliance to Definition
The green transformation of the wool industry is not simply about emission reduction. A FAO representative at the congress noted that behind every strand of wool is a pastoral family, and the human and natural story of the wool industry needs to be retold. Currently, a new generation of urban youth, influenced by one-sided information, generally believes that animal husbandry has environmental problems, a cognitive bias eroding wool's market value.
The release of the Green Paper is the industry's proactive move to seize discourse power. It attempts to use scientific data to correct exaggerated negative narratives about wool's environmental impact, proving to consumers the low-carbon, circular advantages of wool as a natural fiber. For export-oriented Chinese wool enterprises, this action is critical—markets like the EU are accelerating the implementation of carbon border adjustment mechanisms, and having certified carbon footprint data will become a pass to high-end markets.
The Dalan Model: From OEM to Branding
Dalan's knitwear industry has evolved over 40 years, from early OEM and label manufacturing to independent branding and cultural empowerment. This path has not been smooth. The party secretary of Dalan admitted at the congress that the industry is in a golden period of transformation and upgrading, but challenges remain: how to move from 'manufacturing' to 'smart manufacturing', and how to make 'Dalan Knitwear' a globally recognized origin brand.
Sun Ruizhe, president of the China National Textile and Apparel Council, provided direction in his keynote: improve the innovation ecosystem, create diverse fashion, deliver shared value, and strengthen global cooperation. These four proposals essentially outline the upgrade path from 'selling products' to 'selling standards' and 'selling culture'. Dalan's practice shows that smart factory upgrades, green dyeing technology applications, and designer brand incubation are becoming new growth drivers for the industrial belt.
Youth Power and Global Synergy
The congress's special Wool Youth Program revealed the industry's concern about a talent gap. Dozens of young representatives from different countries exchanged ideas, covering areas from raw material sourcing to technology R&D and brand marketing. The program aims to help newcomers cross geographical boundaries, build industry networks, and realize that wool is not just an ancient craft but a career worth passing down.
This generational transmission is particularly important in a globalized context. IWTO Chairman Klaus Steger emphasized that the wool industry faces complex challenges spanning trade, politics, and the environment, requiring international organizations to act as bridges. The fact that the China Wool Textile Association and Dongguan Wool Textile Association co-hosted this congress signals China's proactive participation in global rule-making.