China's textile and apparel foreign trade in the first half of 2026 reached $145.96 billion, up 1.4% year-on-year. But behind this seemingly stable number lies a sharply diverging picture across the supply chain. Customs data released on July 14 shows textile exports at $73 billion, up 3.5%, while apparel exports were $72.96 billion, down 0.7%. The $40 million gap between the two categories reflects fundamentally different demand dynamics for China's manufacturing capabilities.
June Turning Point: A Shot in the Arm from Autumn-Winter Stocking
June emerged as the biggest highlight of the half year. Monthly textile and apparel exports hit $29.27 billion, up 7.2% year-on-year and surging 14.3% month-on-month. Textile exports alone reached $13.52 billion, up 12.2% year-on-year and 7.4% sequentially, while apparel exports stood at $15.75 billion, up 3.2% year-on-year and an impressive 21% month-on-month.
The core driver behind this rebound is the early start of autumn-winter stocking by overseas brands. After over a year of lean inventory management, brands have finally begun restocking—but with a distinct pattern of shorter lead times, larger individual orders, and higher delivery urgency. This plays directly into the strength of China's supply chain: rapid response capability that Southeast Asian producers still struggle to match.
US Market: The Biggest Growth Engine
By market, the United States was the single largest source of growth in H1. Data for the first five months shows China's textile and apparel exports to the US grew 15 percentage points faster than the same period last year. This acceleration reflects multiple factors: the stabilization of bilateral trade expectations following the US-China summit, completion of inventory destocking by US brands, and a renewed shift of procurement toward Chinese suppliers.
In contrast, traditional markets in the EU, Japan, and Korea remained sluggish. The EU continues to grapple with high energy costs and inflation, suppressing consumer spending on apparel. ASEAN, Japan, and Korea saw reduced imports from China due to regional tensions and rising energy prices. The divergence between the US and other mature markets is becoming more pronounced, increasing the weight of the US in China's textile export portfolio.
Product Structure: Upstream Resilience vs. Downstream Pressure
Category-level data reveals the stark contrast along the supply chain. In the first five months, yarn exports grew 6.6% year-on-year, fabric exports edged down only 0.5%, and textile products rose 2.6%. Meanwhile, apparel and clothing accessories exports fell 1.6%.
The resilience of upstream orders stems from the completeness and irreplaceability of China's textile supply chain—from chemical fiber, spinning, dyeing and finishing to finished products. With overseas brands adopting lean inventory strategies and reducing large long-term garment orders, they are instead placing more frequent, smaller orders for semi-finished products like yarn and fabric. This 'buy intermediate, not finished' model amplifies China's advantage in delivery speed and quality consistency.
The garment OEM segment faces a very different reality. Low entry barriers, capacity diversion to Southeast Asia and South Asia, and intense price competition continue to pressure margins. While June showed a strong sequential rebound, year-on-year growth was only 3.2%, indicating that the long-term structural pressure remains unresolved.
Currency Fluctuations and Profit Transmission
In renminbi terms, cumulative textile and apparel exports in H1 were 1,012.22 billion yuan, down 2.2% year-on-year—a contrast to the dollar-denominated growth. This reflects the real impact of exchange rate volatility on exporters: textile exports of 506.42 billion yuan fell only 0.1%, showing strong resilience, while apparel exports of 505.8 billion yuan dropped 4.2%, significantly squeezing garment manufacturers' profits.
For exporters, currency fluctuations affect not only headline numbers but also pricing, profit margins, and payment cycles. June showed synchronized improvement in renminbi terms, with monthly exports of 200.25 billion yuan rising both year-on-year and month-on-month. Fabric categories performed particularly well, but apparel still posted a slight year-on-year decline, suggesting that while real demand is recovering, profit recovery for garment exporters will take longer.
Outlook: Structural Adjustment Amid Resilience
Looking ahead to H2, the global trade environment remains complex. The World Bank warns that the global economy will continue to face the triple pressures of rising energy costs, high inflation, and monetary tightening, dampening consumption growth. Weak recovery in European and US end demand, persistently high input costs, and fragmented global trade patterns will test the industry.
Yet the foundation of China's textile and apparel trade remains solid. June's rebound has injected confidence and pointed clearly to the direction of transformation: the era of low-price, high-volume exports is over. A complete supply chain, product innovation, and diversified global market presence are the core tools for navigating the cycle.