One out of every five sweaters in the world comes from Dalang, Dongguan. This figure underscores the deep integration of an industrial cluster into the global wool supply chain. On June 24, the 95th International Wool Textile Conference opened in Dalang, where Sun Ruizhe, President of the China National Textile and Apparel Council, positioned Dalang as a microcosm of China's textile integration into the world. The signals from this conference extend far beyond wool itself, outlining the industry's adaptive pathways under multiple pressures from technology, consumption, and geopolitics.
Scale Advantage as a Source of Supply Certainty
China's textile industry remains a cornerstone of global supply chains. Public data shows the country processes over 60 million tons of fiber annually and produces more than 70 billion garments, accounting for over 50% of the global share in both categories. Exports have exceeded $300 billion for six consecutive years, with strong shipments of intermediate goods like chemical fibers and fabrics providing stable supply for downstream manufacturers worldwide. From January to May this year, textile and apparel exports reached $116.73 billion, with textile exports up 1.7% year-on-year, highlighting the resilience of intermediate goods. This scale advantage means that during periods of supply chain volatility, buyers can worry less about disruption risks and focus more on balancing cost and quality.
The Dalang Model: Cluster Effects in Action
Dalang's industrial data vividly demonstrates the power of agglomeration. The entire industry chain sees an annual transaction value exceeding 72 billion yuan, with garment production surpassing 900 million pieces annually. This achievement is not overnight but the result of decades of continuous international order intake, supporting infrastructure development, and skilled labor cultivation. For buyers, operating within such a cluster means that fabric, accessories, design, sampling, and finishing can be completed within a few kilometers, significantly shortening development cycles and logistics costs. Dalang's case illustrates that despite global trends toward decentralization, China's mature industrial clusters still offer irreplaceable efficiency advantages.
Smart Manufacturing: A New Balance of Efficiency and Cost
China's textile industry is transitioning from labor-intensive to technology-intensive. Public data indicates that R&D spending intensity among above-scale enterprises rose from 1% in 2020 to 1.3% in 2024, with the digitalization rate of key processes reaching 63.2%, higher than the national manufacturing average. At the enterprise level, Jiangsu Yueda Textile's "Lighthouse Factory" has reduced labor per 10,000 spindles by about 70%, increased total labor productivity by more than four times, lowered unit energy consumption by 15%, and cut processing costs by 26%. This means that even as labor costs rise, smart transformation can effectively offset them and even create new cost advantages. For foreign trade companies, order evaluation must now consider not just labor costs but also the flexibility of production lines—smart lines can switch product varieties faster and control quality more precisely.
Green and Brand: Dual Engines for Value Upgrade
Green technologies like waterless dyeing and digital printing are accelerating adoption, driven by both regulatory compliance and brand premium opportunities. Meanwhile, the global popularity of Chinese-style fashion has boosted the recognition of Chinese design and brands. Companies like Anta and SHEIN have entered the world's top 500 brands, while Hengli, Weiqiao, Erdos, and Shenzhou International have deepened their international engagement through cross-border mergers and global capacity deployment. For buyers, Chinese suppliers are no longer just manufacturers but partners capable of offering design services, brand collaboration, and sustainability certifications.
Smart Economy and Experience Economy: New Industry Paradigms
The conference theme, "Smart Weaving the Future: Wool's Health and Digital Life," highlights two key trends. First, the penetration of the smart economy: AI-assisted design has improved pattern design efficiency by over 200%, and autonomous robot folding has brought unmanned operations to non-standard flexible processes. The global AI market is projected to reach $757.58 billion in 2025, with intelligent agents reshaping the entire chain from design to production. Second, the rise of the experience economy: consumer demand for health, emotional connection, and self-expression is transforming wool products from functional warmth into lifestyle carriers. This means future orders will be smaller in volume, more diverse in style, and faster in turnover, testing the responsiveness and flexibility of supply chains.
Resilience Under Pressure: The Story Behind the Data
Despite external pressures from geopolitical conflicts and energy volatility, China's textile industry posted a 19.3% year-on-year increase in total profit in the first four months of this year. The operating profit margin for above-scale enterprises stood at 2.9%, and retail sales of garments, footwear, hats, and knitwear by enterprises above the designated size grew 8.1% year-on-year. These figures indicate that while absorbing cost increases, the industry has maintained profitability through product upgrades and efficiency gains. For foreign trade companies, this means China's textile competitiveness is not solely based on low prices but on a sustainable advantage built on comprehensive efficiency and quality.