One in five sweaters worldwide is made in Dalang, Dongguan. This statistic, repeatedly cited at the 95th International Wool Textile Conference, is more than a local badge—it underscores China’s irreplaceable role in the global textile supply chain.
Industrial Backbone: The Dalang Model and Steady Supply
Dalang, a key wool textile town in Guangdong, produces over 900 million garments annually, with a full-industry-chain transaction value exceeding 72 billion yuan. Behind this lies a complete manufacturing ecosystem: raw material sourcing, yarn spinning, garment design, and finishing all within a few kilometers. Sun Ruizhe, President of the China National Textile and Apparel Council (CNTAC), noted at the conference that China processes over 60 million tons of fiber annually, produces more than 70 billion garments—over 50% of the global total—and has maintained textile exports above $300 billion for six consecutive years. These figures mean that when global markets fluctuate, China’s textile industry acts as a stabilizer.
Technological Leap: From Automation to AI Agents
The conference theme, “Smart Weaving the Future: Wool’s Health and Digital Life,” captures the core of industry upgrading. China’s textile sector has achieved a 63.2% digitization rate in key processes, above the national manufacturing average. In 2024, 30 textile companies were listed in China’s 5G factory directory. Green technologies like water-free dyeing and digital printing are accelerating adoption. More notably, AI is shifting from an assistant to a driver: Semir’s AI design system boosts R&D efficiency by 35% and pattern design by over 200%; Bosideng’s “AI Aesthetic Brain” cuts sample development costs by more than 60%. The humanoid robot market grew ~508% year-on-year, and IDC predicts billions of AI agents will enter the workforce by 2030. This means the production organization of the wool industry is being fundamentally rewritten.
Consumer Shift: Experience Economy Reshapes Supply Chains
Consumer segmentation is intensifying, with health, emotional connection, and self-expression becoming core demands. Social media accelerates information spread, making product discovery and decisions increasingly intelligent. This requires wool companies to deliver not just products but stories, experiences, and sustainable value. The global rise of Chinese-style fashion and brands like Anta and SHEIN entering the world’s top 500 shows that Chinese design is moving from “OEM” to “defining.” This shift demands supply chains with faster response, smaller minimum order quantities, and greater flexibility.
Data Insights: Structural Highlights Amid Pressure
From January to April 2025, revenue of above-scale textile enterprises dipped 0.3% year-on-year, but total profit surged 19.3%, with a profit margin of 2.9%. Retail sales of garments, shoes, hats, and knitwear above designated size grew 8.1%. From January to May, textile exports reached $59.48 billion, up 1.7%, while garment exports were $57.24 billion, down 1.6%. This export structure shift indicates strong global demand for intermediate goods (fabrics, yarns) but pressure on finished garments from trade barriers and order relocation. Investment diverged: textile fixed-asset investment rose 10.8%, while apparel and chemical fiber fell 10.3% and 14.5%, respectively, showing capital flowing toward automation and smart production.