China's textile and apparel exports in the first half of 2026 delivered a mixed but resilient performance. According to data released by the General Administration of Customs on July 14, total exports reached $145.96 billion, up 1.4% year-on-year, holding steady at a historical high. The standout was June, with exports hitting $29.27 billion, a month-on-month surge of 14.3% and a year-on-year increase of 7.2%, signaling the start of autumn-winter restocking. Despite global inflation and geopolitical uncertainties, the sector's fundamentals remain solid.
Upstream Strength vs. Apparel Weakness
Category-level data reveals a sharp divergence. Textile exports totaled $73 billion, up 3.5% year-on-year, with yarn rising 6.6% and textile products up 2.6%. This reflects overseas brands shifting to high-frequency purchases of semi-finished goods. In contrast, apparel exports fell 0.7% to $72.96 billion, though the decline narrowed by 0.9 percentage points from last year. The OEM segment continues to face capacity relocation and price competition. June data amplified this trend: textile exports surged 12.2% year-on-year and 7.4% month-on-month, while apparel rose 3.2% year-on-year but jumped 21% month-on-month. In RMB terms, total exports fell 2.2% to 1,012.22 billion yuan, with textiles down just 0.1% and apparel down 4.2%, highlighting currency headwinds on margins.
US Market Shines, EU and Japan Lag
Geographically, the US market was the top growth driver. In the first five months, export growth to the US widened by 15 percentage points year-on-year, fueled by improved bilateral relations and inventory restocking. In contrast, exports to the EU, Japan, and South Korea weakened due to high energy costs and inflation. The EU's consumer apparel spending remains subdued, while ASEAN and Japan-South Korea imports from China declined amid regional tensions and energy price pressures. June's rebound also benefited from temporary relief in the Middle East and lower shipping costs.
Supply Chain Edge Defines Future
The data underscores China's integrated supply chain advantage—from fiber to finished goods—which rivals cannot easily replicate. This is the bedrock of upstream growth. However, the low-barrier apparel OEM segment remains under structural pressure. The era of volume-driven, low-price exports is over. Moving forward, product innovation, supply chain depth, and global diversification will be key to navigating cycles. Despite external uncertainties, China's textile industry is well-positioned to maintain stability through adaptive product and market strategies.