China's textile and apparel exports reached $145.96 billion in the first half of 2026, up 1.4% year-on-year, according to customs data. More notably, June exports hit $29.27 billion, surging 14.3% month-on-month, signaling the start of autumn-winter stocking overseas.
However, the landscape is far from uniform. Textile exports rose 3.5% to $73 billion, while apparel exports fell 0.7% to $72.96 billion. This divergence reflects a fundamental shift in global sourcing strategies.
June Rebound: Stocking Cycles and Cost Relief
June was the standout month. Textile exports reached $13.52 billion, up 12.2% year-on-year and 7.4% month-on-month; apparel exports hit $15.75 billion, up 3.2% year-on-year but surging 21% month-on-month. These numbers indicate buyers are not just restocking but preparing for peak season.
In RMB terms, total H1 exports were 1,012.22 billion yuan, down 2.2%, but June alone reached 200.25 billion yuan. Exchange rate fluctuations have been a headwind, but the June rebound confirms real demand is returning.
A key external factor is the drop in shipping costs following the de-escalation in the Middle East. Lower freight rates improve landed cost for buyers, potentially giving Chinese exporters more pricing power in H2.
Market Divergence: US Shines, Traditional Markets Lag
The US market was the biggest growth driver, with export growth accelerating 15 percentage points compared to last year. Stable bilateral expectations, completed inventory destocking by brands, and China's supply chain efficiency all contributed.
In contrast, the EU, Japan, and Korea continued to weaken. High energy costs and inflation in the EU dampened consumer apparel spending; ASEAN and Korea faced headwinds from regional tensions and rising energy prices. These markets are unlikely to recover soon.
For exporters, this means re-evaluating customer portfolios. Over-reliance on any single market is risky, and while the US is strong, geopolitical uncertainty remains.
Product Structure: Upstream Resilience, Apparel Under Pressure
First five months data shows yarn exports up 6.6%, fabric exports down just 0.5%, and textile products up 2.6%. But apparel exports fell 1.6%.
The explanation: overseas brands are adopting low-inventory strategies, cutting long-term apparel orders and buying semi-finished goods like yarn and fabric more frequently. China's complete supply chain—from fiber to spinning, dyeing, and finishing—offers unmatched efficiency and quality.
Apparel manufacturing, with lower entry barriers, faces intense competition from Southeast Asia and South Asia. This structural advantage for upstream segments may persist, but downstream pressure will eventually ripple back.
H2 Outlook: Confidence Meets Challenges
The World Bank's warning is clear: global growth faces headwinds from energy prices, inflation, and tightening monetary policy. Weak consumption in Europe and the US, rising production costs, and fragmented trade patterns will test the industry.
But June's rebound shows the foundation is solid. Complete industrial chain, product innovation, and diversified market exposure are the three pillars for navigating the cycle.