In the first half of 2026, China's textile and apparel exports reached $145.96 billion, up 1.4% year-on-year, signaling resilience amid high inflation and geopolitical uncertainty. June exports hit $29.27 billion, surging 7.2% YoY and 14.3% month-on-month, marking a turning point driven by autumn-winter restocking. The data reveals a clear structural divergence: upstream textiles outperformed garments, underscoring the strength of China's integrated supply chain.
Structural Divergence: Upstream Resilience Offsets Garment Weakness
Textile exports in H1 totaled $73 billion, up 3.5%, while apparel exports reached $72.96 billion, down 0.7%. Within textiles, yarn exports grew 6.6% and fabric dipped only 0.5%, whereas garment and accessory exports fell 1.6%. This reflects a shift in overseas brands' inventory strategies: reducing long-term garment orders in favor of frequent purchases of semi-finished goods like yarn and fabric. China's complete supply chain—from chemical fiber to finished products—offers delivery efficiency and diversity that other regions cannot easily replicate. For buyers, this means upstream suppliers with full-chain capabilities are becoming more valuable partners.
June Rebound: Autumn-Winter Orders and Favorable Factors
June data stood out: textile exports of $13.52 billion (up 12.2% YoY, 7.4% MoM) and apparel exports of $15.75 billion (up 3.2% YoY, 21% MoM). The rebound was supported by easing Middle East tensions, which lowered shipping costs, and the completion of inventory destocking by overseas brands. For exporters, June's surge confirms that as long as supply chain efficiency remains intact, seasonal demand for autumn-winter goods will concentrate in specific windows.
Market Fragmentation: US Leads, EU and Japan-Korea Lag
In the first five months, the US market emerged as the biggest growth driver, with export growth accelerating by 15 percentage points compared to last year. The US-China summit stabilized bilateral expectations, and brands resumed restocking. In contrast, the EU, Japan, and South Korea saw weakening demand due to high energy costs and inflation. ASEAN and Japan-Korea imports from China also declined amid regional tensions and rising energy prices. This fragmentation requires exporters to diversify market strategies rather than relying on a single region.
RMB Exchange Rate Impact and Profit Squeeze
In RMB terms, H1 textile and apparel exports totaled 1,012.22 billion yuan, down 2.2% YoY. Textiles were 506.42 billion yuan (down 0.1%), while apparel was 505.8 billion yuan (down 4.2%). Exchange rate fluctuations distorted dollar-denominated growth, squeezing profit margins for garment manufacturers. June saw a recovery in RMB terms, with monthly exports of 200.25 billion yuan, but the gap between dollar and yuan growth highlights the need for better currency risk management.
External Challenges and Industry Strengths
Looking ahead, the global trade environment remains tough. The World Bank warns of continued pressure from energy prices, inflation, and monetary tightening. Weak consumer demand in the US and EU, rising production costs, and fragmented global trade all pose challenges. Yet China's textile industry retains core advantages: a complete supply chain that is difficult to replicate, and the ability to deliver diverse products efficiently. The path forward lies in moving beyond low-price, volume-driven models toward product innovation and multi-market diversification.