China's textile and apparel exports in the first half of 2026 delivered a mixed picture of stable volume but diverging structures. Data from the General Administration of Customs, released on July 14, showed cumulative exports reached $145.96 billion from January to June, up 1.4% year-on-year. On the surface, this appears to be steady growth, but a closer look reveals starkly different fortunes for upstream and downstream sectors.
June data signals a key inflection point
June exports hit $29.27 billion, up 7.2% year-on-year and a remarkable 14.3% month-on-month surge—the most striking figure of the half-year. More notably, textile exports reached $13.52 billion, up 12.2% year-on-year, while apparel exports stood at $15.75 billion, soaring 21% month-on-month. The month-on-month growth far exceeds the year-on-year figure, indicating that overseas buyers initiated concentrated autumn-winter stockpiling in June. For upstream yarn and fabric suppliers, this signals a clear short-term order recovery.
In RMB terms, cumulative exports in the first half totaled 1.01222 trillion yuan, down 2.2% year-on-year, underscoring the erosion of profit margins by exchange rate fluctuations. However, June exports in RMB reached 200.25 billion yuan, rising both year-on-year and month-on-month, confirming that the demand recovery is real, not just a statistical artifact.
US market alone drives growth, EU and Japan-Korea lag
Export data for the first five months reveals the US market as the biggest growth driver. Improved bilateral relations following the China-US summit, combined with depleted brand inventories, have significantly boosted procurement from China. In contrast, the EU remains mired in energy-driven inflation, suppressing consumer spending on apparel. ASEAN, Japan, and South Korea have seen reduced imports from China due to regional tensions and high energy costs. This regional divergence means exporters can no longer apply a one-size-fits-all strategy to global markets.
Industrial chain advantage shifts to intermediate goods
Category-level data reveals deeper industrial logic. From January to June, textile exports totaled $73 billion, up 3.5% year-on-year, while apparel exports reached $72.96 billion, down 0.7% year-on-year. The volumes are nearly equal, but growth trajectories are opposite. First-five-month data further confirms this: yarn exports grew 6.6% year-on-year, fabric exports dipped only 0.5%, while apparel and clothing accessories fell 1.6%.
This suggests foreign brands are adjusting procurement strategies—reducing large long-term apparel orders in favor of frequent purchases of semi-finished goods like yarn and fabric. China's complete textile chain, from chemical fiber to finished products, offers unmatched delivery efficiency and product quality, underpinning the sustained growth of upstream categories. In contrast, apparel OEM has low barriers, faces significant international capacity diversion, and suffers from severe price competition, a trend unlikely to reverse soon.
Challenges and opportunities ahead
The World Bank warns that the global economy will continue to face triple pressures from rising energy costs, persistent inflation, and tightening monetary policies. Weak consumer recovery in Europe and the US, high production costs, and fragmented trade patterns will test industry players. Yet the June export rebound injects confidence and points to a clear direction for transformation—the era of low-price, high-volume crude exports is over. A complete industrial chain, product innovation, and diversified global布局 are the keys to weathering the cycle.