One town produces one out of every five sweaters globally. Dalang, a wool-knitting hub in Dongguan that rose during China's reform and opening-up, now yields over 900 million garments annually, with a total industrial chain transaction value exceeding 72 billion yuan. This scale is not just about volume—it reflects the deep integration of the global wool supply chain.
The Data Behind the Scale
Sun Ruizhe, President of the China National Textile and Apparel Council, released key figures at the 95th International Wool Textile Conference: China processes over 60 million tons of fiber annually, produces more than 70 billion garments each year, and accounts for over 50% of global output. Textile exports have surpassed $300 billion for six consecutive years, with strong shipments of intermediate goods like chemical fibers and fabrics providing a stable backbone for global supply chains.
What does this mean? For overseas buyers, China is not just a garment supplier but a stable source of upstream raw materials. Amid geopolitical conflicts, energy volatility, and shipping disruptions, this intermediate-goods supply chain directly determines delivery lead times and cost structures for end brands.
Transformation Under New Paradigms
The conference theme, 'Smart Weaving the Future: Wool's Health and Digital Life,' highlights two key trends: intelligence and experience.
On the smart manufacturing front, data is rewriting traditional wool production logic. At Yuedai Textile's 'Lighthouse Factory,' smart upgrades reduced labor per 10,000 spindles by about 70%, boosted labor productivity by over four times, cut energy consumption by 15%, and lowered processing costs by 26%. This is not an isolated case. China's textile industry has digitized 63.2% of key processes, above the national manufacturing average. In 2024, 30 textile companies were listed in the 5G Factory Directory.
The implication: For factories, smartization is no longer optional but a matter of cost and efficiency survival. Wool enterprises still relying on manual labor will face accelerated order losses within three years.
On the experience economy front, consumer markets are segmenting. Buyers no longer settle for warmth alone—they seek health, emotional connection, and self-expression. The global rise of guochao (national trend) fashion and the entry of Anta and Shein into the GYBrand World Top 500 signal a shift: brand value is overtaking pure manufacturing premiums.
Resilience Under Pressure
China's textile industry has been navigating headwinds this year. From January to April, revenue of above-scale enterprises fell 0.3% year-on-year, but total profit surged 19.3%, with a profit margin of 2.9%. This contrast suggests the industry is squeezing out profits through product upgrades and cost control amid low growth.
Notably, from January to May, textile exports rose 1.7% to $59.48 billion, while garment exports fell 1.6% to $57.24 billion. This shift in export structure confirms a trend toward 'intermediate goods going global'—China is moving from finished-goods exports to upstream raw materials and fabrics. For global buyers, this means future sourcing may shift to Chinese yarns and fabrics, with final garment assembly in third countries.