China's textile and apparel exports totaled $145.96 billion in the first half of 2026, up 1.4% year-on-year. While this headline figure appears modest, the real story lies in June's explosive rebound: monthly exports surged 14.3% month-on-month to $29.27 billion, signaling the start of autumn-winter stocking season for overseas buyers.
Structural Divergence: Upstream vs. Downstream
The data reveals a stark divergence between upstream and downstream sectors. In H1, textile exports reached $73 billion, up 3.5% YoY, while apparel exports stood at $72.96 billion, down 0.7% YoY. In June alone, textile exports surged 12.2% YoY, compared to just 3.2% for apparel. This gap reflects a fundamental shift in overseas buying patterns: brands are favoring low-inventory strategies, placing frequent orders for yarns and fabrics rather than large-scale garment contracts.
China's integrated textile chain—from chemical fibers and spinning to dyeing and finished products—offers unmatched delivery speed and quality, making upstream products difficult to replace. In contrast, the garment manufacturing sector faces low entry barriers, intense international competition, and persistent price wars.
US Market Leads, Traditional Markets Lag
Among global markets, the US stands out as the largest growth driver. Exports to the US expanded 15 percentage points faster in growth rate compared to the same period last year, fueled by improved bilateral relations and depleted brand inventories. Meanwhile, the EU, Japan, and South Korea showed weakening demand, constrained by high energy costs and inflation. The Middle East's temporary détente and falling shipping costs provided short-term relief in June, but sustainability remains uncertain.
RMB-Denominated Reality Check
Currency fluctuations are eroding actual earnings. In RMB terms, total textile and apparel exports fell 2.2% YoY to 1.012 trillion yuan. Garment exports dropped 4.2%, while textiles declined only 0.1%. This means profit margins for garment manufacturers are under far greater pressure than dollar-denominated figures suggest. Companies must monitor exchange rates, raw material costs, and shipping expenses to protect profitability.
Second-Half Challenges and Industry Resilience
The global economic outlook remains challenging, with the World Bank warning of triple pressures from energy price hikes, persistent inflation, and monetary tightening. Weak consumer demand in Europe and the US, rising production costs, and fragmented global trade will continue to test the industry.
Yet China's textile and apparel export base remains solid. The $145.96 billion H1 total is historically high, and June's rebound injects confidence. The era of low-cost, volume-driven exports is over. The path forward lies in leveraging the complete industrial chain, product innovation, and diversified global presence.