In the first half of 2026, China's textile and apparel exports delivered a mixed performance. Customs data shows total exports reached $145.96 billion, up 1.4% year-on-year, maintaining a high historical base. However, beneath the surface, upstream and downstream sectors diverged sharply: textile exports hit $73 billion, up 3.5%, showing strong resilience; apparel exports stood at $72.96 billion, down 0.7%, though the decline narrowed by 0.9 percentage points from the same period last year, the pressure remains.
June marked a turning point. Monthly exports surged to $29.27 billion, up 7.2% year-on-year and 14.3% month-on-month, exceeding expectations. In USD terms, textile exports reached $13.52 billion, soaring 12.2% year-on-year and up 7.4% month-on-month; apparel exports hit $15.75 billion, up 3.2% year-on-year but surging 21% month-on-month. This reflects concentrated autumn-winter stocking demand from overseas brands and accelerated procurement after inventory destocking. In RMB terms, June exports totaled 200.25 billion yuan, with both year-on-year and month-on-month growth, led by robust fabric segment growth, confirming real overseas buying intent.
Market performance was sharply divided. The US market emerged as the biggest growth driver, with export growth expanding 15 percentage points year-on-year. The Sino-US summit stabilized bilateral expectations, and as overseas brand inventories bottomed out, buyers accelerated procurement from Chinese supply chains. In contrast, traditional mature markets like the EU, Japan, and South Korea weakened. The EU struggled with high energy costs and inflation, dampening consumer apparel spending; ASEAN, Japan, and South Korea reduced imports from China due to geopolitical tensions and rising energy prices. Short-term benefits also came from eased Middle East tensions and lower shipping costs in June.
Product-level data revealed stark operational differences. Yarn exports grew 6.6% year-on-year, fabric exports dipped only 0.5%, and finished textile products rose 2.6%; but apparel and accessories fell 1.6%. This stems from overseas brands' shift to low-inventory strategies, favoring high-frequency orders for yarn and fabric over large garment orders. China's complete supply chain—from chemical fiber, spinning, dyeing to finished goods—offers unmatched delivery speed and quality, underpinning upstream growth. In contrast, the low-barrier garment processing sector faces intense competition from offshore capacity and price wars, with no near-term relief.
Looking ahead, the global trade environment remains challenging. The World Bank warns that energy price hikes, persistent inflation, and tightening monetary policies will continue to suppress global consumption. Weak consumer recovery in Europe and the US, high production costs, and fragmented trade patterns will test industry players. Yet the June rebound offers confidence and signals a clear direction: the era of low-price, volume-driven exports is over. Supply chain completeness, product innovation, and diversified global presence are the keys to navigating the cycle.