China's textile industry is at a critical inflection point: the past three decades of growth driven by production capacity and price advantages are giving way to brand premium as the new growth engine. The joint action plan by five ministries, including the Ministry of Industry and Information Technology, directly targets this structural gap—aiming to cultivate at least 25 globally recognized brands within three years while building a supporting evaluation index system. This is not just a policy signal but a catalyst for resource reallocation across the industry.
Background: The Industrial Logic Behind the Policy
China's textile exports have ranked first globally for years, but brand value addition remains low. Customs data shows that the average unit price of textile and apparel exports in 2024 was only one-fifth to one-tenth of international well-known brands. The joint document elevates brand building from a corporate initiative to a national strategy. The plan's emphasis on 'quality first, selecting the best among the best' means that over the next three years, industry resources will concentrate on a few leading brands, rather than through universal subsidies. Sun Ruizhe, President of the China National Textile and Apparel Council (CNTAC), stressed that the target is not a simple quantity setting but a guide for the industry to focus deeply and channel high-quality resources into brands with true potential, heritage, and responsibility.
From the perspective of industrial clusters like Keqiao, Shengze, and Nantong, traditional fabric hubs are under pressure to shift from 'selling cloth' to 'selling brands.' These areas have relied on low prices and high volumes, but branding requires higher R&D investment and longer payback periods. After the policy takes effect, local governments are likely to link brand cultivation with industrial park support, forcing companies to adjust their business strategies.
Industrial Impact: Reshaping Supply Chains and Markets
The direct impact of the brand cultivation action plan is a shift in supply chain value distribution. Brands will demand stricter quality control and design capabilities, which will cascade down to upstream fabric and yarn suppliers. For example, premium brands require raw materials with environmental certifications (e.g., GRS, OEKO-TEX) and functional attributes (e.g., UV resistance, moisture wicking), pushing chemical fiber companies to accelerate technological upgrades. Additionally, the plan promotes the deep integration of cultural tourism activities with brand consumption—meaning brands must be tied to lifestyles, making offline experience stores and immersive marketing essential for home textile and apparel brands.
For foreign trade enterprises, this is a double-edged sword. On one hand, OEM orders may shrink as brand owners raise standards; on the other hand, companies with their own brands will benefit from policy advantages, including intellectual property protection and international market promotion support. The evaluation index system mentioned by Sun Ruizhe is key—it will make brand value measurable, providing a basis for bank loans, tax incentives, and export credit insurance. For upstream factories, this means future orders may require suppliers to provide brand certifications or ESG reports, or risk losing business.