One out of every five sweaters globally is produced in Dalang, Dongguan. This township-level economy, boasting a complete woolen knitting industry chain, churns out over 900 million garments annually, with a full-industry-chain transaction value exceeding 72 billion yuan. The 95th International Wool Textile Conference, held here in late June, sent a clear signal: the wool industry stands at a crossroads, transitioning from traditional manufacturing to smart, green, and health-oriented production.
Industrial Agglomeration and Global Role Dalang's rise is no accident. It leverages the scale and system advantages of China's textile industry to become an irreplaceable link in the global supply chain. China's textile sector processes over 60 million tons of fiber annually and produces more than 70 billion garments, both accounting for over 50% of the global total. With exports exceeding $300 billion for six consecutive years, the strong export of intermediate goods like chemical fibers and fabrics provides solid support for global supply chain stability.
However, behind the agglomeration effect lies a constant battle between cost and efficiency. Dalang's woolen industry belt faces dual challenges of rising labor costs and increasing environmental pressure. Enterprises within the cluster, especially small and medium-sized factories, urgently need technological upgrades to maintain competitiveness. The conference's choice of Dalang itself validates the value of industrial clusters, implying that future growth will rely more on innovation than sheer scale expansion.
Technological Empowerment: From Digitization to Intelligence The theme 'Smart Weaving the Future' precisely addresses the industry's pain points. The digitalization rate of key processes in China's textile industry has reached 63.2%, higher than the national manufacturing average. In 2024, 30 textile enterprises were included in the 5G factory list. AI is penetrating the entire chain of design, production, and management. The 'Lighthouse Factory' case of Jiangsu Yueda Textile is particularly representative: through smart manufacturing, the number of workers per 10,000 spindles decreased by about 70%, overall labor productivity increased more than fourfold, energy consumption per unit fell by 15%, and processing costs dropped by 26%.
This means that for wool enterprises, intelligence is no longer an 'option' but a 'necessity.' Those that first adopt AI-assisted design, intelligent quality inspection, and flexible production lines will form a generational advantage in cost control and response speed. For industrial belts like Dalang, dominated by small and medium-sized factories, shared smart manufacturing platforms may become the key to breaking through.
Resonance of Green Responsibility and Healthy Consumption The eco-friendly attributes of natural fibers resonate with the growing global consumer awareness of sustainability. The accelerated application of green technologies like waterless dyeing and digital printing is reshaping the wool industry's environmental image. China's textile industry has comprehensively improved resource utilization efficiency, and its green manufacturing system is continuously being perfected.
But green transformation requires substantial investment. For wool enterprises with already thin profit margins, the costs of purchasing environmental equipment, process modification, and certification are significant burdens. Industry public data shows that from January to April 2025, the operating profit margin of above-scale textile enterprises was only 2.9%. Balancing green investment with profitability pressure is a challenge that industrial belt enterprises must face. The signal from the conference is that the combination of health and digital life may open new markets for high-value-added products, thereby absorbing some of the green costs.
Changes and Constants in the Global Supply Chain Despite uncertainties from geopolitical conflicts, trade frictions, and shipping disruptions, China's global role in the textile industry is unlikely to be replaced in the short term. From January to May, textile and apparel exports reached $116.73 billion, a year-on-year increase of 0.1%, with textile exports growing by 1.7%. The 19.3% year-on-year profit increase for above-scale enterprises demonstrates the industry's resilience under pressure.
However, investment data reveals divergence: fixed asset investment in the textile industry grew by 10.8% year-on-year, while that in the apparel and chemical fiber industries fell by 10.3% and 14.5%, respectively. This indicates that capital is shifting from downstream garment manufacturing to upstream fabric and yarn production. For wool enterprises, especially those in the mid-stream spinning and weaving stages, this could mean stronger demand for equipment upgrades and more intense capacity competition.