China's textile and apparel exports reached USD 145.96 billion in the first half of 2026, up 1.4% year-on-year, a seemingly modest figure that nonetheless underscores the industry's resilience amid global inflation and geopolitical uncertainty. More importantly, June exports surged 14.3% month-on-month to USD 29.27 billion, signaling the start of autumn-winter restocking and marking a pivotal turning point for the half-year performance.
Structural Divergence Beneath a Stable Total
In USD terms, the first-half data reveals a clear 'strong upstream, weak downstream' pattern. Textile exports totaled USD 73 billion, up 3.5% YoY, with yarn exports growing 6.6% and fabric exports only marginally down 0.5%. In contrast, apparel exports reached USD 72.96 billion, a 0.7% decline YoY, though the drop narrowed by 0.9 percentage points from last year.
This divergence reflects a fundamental shift in overseas brand procurement strategies. Global retailers are maintaining lean inventories, reducing large-volume garment orders in favor of frequent purchases of semi-finished goods like yarn and fabric. China's complete one-stop supply chain—from chemical fiber, spinning, dyeing to finished products—offers unmatched delivery speed and quality consistency that competitors in Southeast Asia or South Asia cannot easily replicate, underpinning the sustained growth of upstream categories.
In RMB terms, the pressure on profit margins becomes more visible. Total textile and apparel exports reached RMB 1,012.22 billion, down 2.2% YoY, with apparel alone falling 4.2% to RMB 505.8 billion, squeezing garment manufacturers' margins between currency fluctuations and rising costs.
June's Autumn-Winter Restocking: A Surprise Rebound
June exports of USD 29.27 billion represented a 7.2% YoY increase and a 14.3% MoM surge, well above market expectations. By category, textile exports hit USD 13.52 billion, up 12.2% YoY, while apparel exports reached USD 15.75 billion, up 3.2% YoY and a remarkable 21% MoM. This rebound was driven primarily by the early launch of autumn-winter restocking by overseas buyers.
The timing is notable: June is typically a transitional month, but this year's early volume release suggests improved confidence in H2 consumer demand. Short-term tailwinds, including the temporary easing of Middle East tensions and falling shipping costs, further boosted restocking appetite. However, whether this pulse can be sustained depends on the real recovery of end-consumer spending in Europe and the US.
US Market Shines, Traditional Markets Struggle
Data for the first five months shows the US market as the single largest growth driver, with export growth rates expanding 15 percentage points from a year earlier. The US-China summit stabilized bilateral trade expectations, and as overseas brands completed inventory destocking, they have increasingly turned back to Chinese supply chains.
In contrast, traditional markets like the EU, Japan, and South Korea continue to weaken. The EU is grappling with high energy costs and persistent inflation, dampening consumer apparel spending. Southeast Asia, Japan, and South Korea are constrained by regional tensions and rising energy prices, reducing their imports from China. This market divergence underscores the urgent need for exporters to diversify their market portfolios.
Supply Chain Advantage as the Bedrock
External challenges remain formidable. The World Bank warns of continued headwinds from energy price spikes, high inflation, and tight monetary policy. Weak recovery in Western consumer demand, rising production costs, and fragmentation of global trade patterns will test the industry's resilience.
Yet China's textile and apparel export sector draws its strength from a complete and resilient supply chain. The efficiency of domestic industrial clusters, product innovation capabilities, and rapid response mechanisms are difficult to replicate elsewhere. The era of competing on low prices and volume is over; product upgrades, brand building, and multi-market diversification are the keys to navigating the cycle.