In the first half of 2026, China's textile and apparel foreign trade reached $145.96 billion, up 1.4% year-on-year. This figure masks a deepening structural divergence: textile exports hit $73 billion (up 3.5%), while apparel exports stood at $72.96 billion (down 0.7%). The gap is narrow but reveals contrasting fates across the supply chain.
June data: Autumn orders drive a rebound
June was the turning point. Exports surged to $29.27 billion, up 7.2% year-on-year and 14.3% month-on-month. Textile exports reached $13.52 billion (up 12.2% YoY, 7.4% MoM), and apparel exports hit $15.75 billion (up 3.2% YoY, 21% MoM). The catalyst was overseas autumn-winter restocking—brands ended months of inventory destocking and began bulk replenishment.
In RMB terms, cumulative exports from January to June fell 2.2% to 1,012.22 billion yuan. Apparel exports dropped 4.2% to 505.8 billion yuan, squeezing manufacturers' margins. However, June exports in RMB rose both YoY and MoM, with fabrics performing strongly, confirming real overseas demand recovery.
Market split: US leads, traditional markets lag
Data from the first five months shows stark regional divergence. The US became the largest growth driver, with export growth expanding 15 percentage points YoY. The China-US summit stabilized expectations, and brands restocked heavily on Chinese supply chains after destocking.
In contrast, EU, Japan, and South Korea weakened. The EU's high energy costs and inflation depressed clothing demand; ASEAN, Japan, and Korea saw imports from China fall due to regional tensions and energy prices. A temporary easing in Middle East tensions and lower shipping costs provided short-term support in June, but sustainability is uncertain.
Category divergence: Upstream intermediates as stabilizers
Detailed data reveals supply chain advantages. Yarn exports rose 6.6% YoY, fabric exports dipped only 0.5%, and textile products increased 2.6%. Apparel exports fell 1.6%. This reflects a shift by overseas brands toward low-inventory strategies, favoring frequent purchases of semi-finished goods like yarn and fabrics over large apparel orders.
China's integrated supply chain—from chemical fiber, spinning, dyeing to finished products—offers unmatched delivery speed and quality. This underpins upstream growth. Apparel processing, with low entry barriers, faces intense competition from Vietnam and Bangladesh, and price wars, a trend unlikely to reverse soon.
Practical recommendations
For buyers - Lock in autumn-winter orders now; June data signals strong restocking demand and potential price increases in peak season. - Hedge currency risks: RMB-denominated exports fell 2.2%, meaning dollar-based costs may fluctuate; use forward contracts or hedging tools. - Prioritize US orders for delivery speed, as the US is the largest growth market; adjust sourcing strategies for EU where demand is weak.
For exporters - Strengthen upstream product lines: textile exports grew 12.2% YoY in June, showing stronger demand than apparel; invest in intermediate goods capacity. - Avoid apparel processing price wars: apparel exports fell 0.7%, squeezing margins; pivot to high-value items like functional fabrics or customized garments. - Diversify markets: EU, Japan, and Korea are sluggish; explore emerging markets like the Middle East and Africa with early channel and certification setup.
The first half of 2026 paints a picture of stable total volume, structural divergence, and a June rebound. The era of low-cost volume exports is over. Supply chain completeness, product innovation, and global diversification are key to navigating cycles. Despite external uncertainties, China's deep industrial base supports a stable trade outlook if companies adjust strategies promptly.