China's textile and apparel foreign trade delivered a mixed performance in the first half of 2026. According to the latest data from the General Administration of Customs, total exports from January to June reached $145.96 billion, up 1.4% year-on-year, maintaining a historically high level. More notably, June marked a turning point with exports hitting $29.27 billion, a month-on-month surge of 14.3% and a year-on-year increase of 7.2%, driven by the concentrated release of autumn-winter restocking orders.
Structural Divergence: Upstream Resilience, Apparel Under Pressure
A clear contrast emerged between textile intermediates and finished garments. Textile exports totaled $73 billion, up 3.5%, with yarn exports rising 6.6% and fabric dipping only 0.5%, underscoring strong demand for upstream raw materials and semi-finished goods. In contrast, apparel exports reached $72.96 billion, down 0.7% year-on-year, though the decline narrowed by 0.9 percentage points from the same period last year. The pressure on garment manufacturing has not fundamentally eased.
The logic behind this divergence lies in overseas brands' adoption of low-inventory strategies, reducing long-term garment orders and opting for frequent procurement of yarns and fabrics to quickly respond to market shifts. China's integrated supply chain—spanning chemical fibers, spinning, dyeing, and finished products—offers delivery efficiency and product quality that are hard to replicate elsewhere, underpinning the sustained growth of upstream categories. Conversely, garment manufacturing, with lower entry barriers, faces capacity relocation to Southeast Asia and intense domestic price competition, a trend unlikely to reverse in the short term.
Uneven Markets: US Emerges as Top Growth Driver
Global demand patterns showed significant fragmentation. Data for the first five months reveals the US market as the largest growth driver, with export growth to the US expanding 15 percentage points compared to the same period last year. The summit between Chinese and US leaders stabilized bilateral expectations, and as overseas brands completed inventory destocking, they increased procurement from Chinese supply chains.
In contrast, traditional mature markets like the EU, Japan, and South Korea saw weakening growth momentum. The EU struggled with high energy costs and inflation, dampening consumer apparel spending. ASEAN, Japan, and South Korea faced headwinds from regional tensions and rising energy prices, leading to reduced textile and apparel imports from China. The temporary easing of Middle East tensions and falling shipping costs provided short-term boosts to June's overall export recovery.
Currency Fluctuations and Cost Pressures
When measured in RMB, exchange rate fluctuations distorted export figures. Cumulative exports in H1 reached 1.01222 trillion yuan, down 2.2% year-on-year. Textile exports stood at 506.42 billion yuan, down only 0.1%, demonstrating strong resilience. Garment exports totaled 505.8 billion yuan, down 4.2%, squeezing profit margins for apparel manufacturers. In June, the RMB-denominated figures also turned positive, with monthly exports reaching 200.25 billion yuan. The fabric segment performed notably well, and despite a slight year-on-year decline in garments, the over 20% month-on-month increase confirmed genuine overseas demand recovery.
Outlook: Challenges Remain, but Foundations Are Solid
Looking ahead to the second half of the year, the global trade environment remains complex. The World Bank warns that the global economy will continue to face triple pressures from rising energy prices, high inflation, and tighter monetary policies, weakening global consumption growth. Sluggish consumer recovery in Europe and the US, elevated production costs, and fragmented global trade patterns leading to capacity competition will continue to test industry players.
However, the H1 2026 data also clearly points to the direction of transformation. The era of low-price, high-volume exports is fading. A complete supply chain, product innovation, and diversified global market presence are the core tools for navigating the cycle. The June rebound injected confidence into the industry and reminded companies to adjust product mixes and market strategies in a timely manner. Relying on China's deep-rooted textile industrial base, the foreign trade sector still has solid support for stable operations.