China's textile and apparel foreign trade in the first half of 2026 totaled $145.96 billion, up 1.4% year-on-year. On the surface, it appears stable, but the data reveals a profound structural divergence: textile exports reached $73 billion, up 3.5%, while apparel exports were $72.96 billion, down 0.7%. This shift highlights the industry's resilience in upstream segments and pressure on downstream manufacturing.
June Rebound: Autumn-Winter Stocking and Multiple Boosters
June data is more telling. Exports hit $29.27 billion, up 7.2% year-on-year and 14.3% month-on-month, the highest monthly figure this year. Textile exports surged 12.2% to $13.52 billion, while apparel exports rose 3.2% to $15.75 billion, with a sharp 21% month-on-month increase. This rebound is driven by the start of autumn-winter stocking, easing tensions in the Middle East, and lower shipping costs.
In RMB terms, cumulative exports fell 2.2% to 1,012.22 billion yuan. Currency fluctuations eroded profits—apparel exports dropped 4.2% to 505.8 billion yuan. June saw a recovery in RMB terms, with fabric exports performing well, but apparel still showed a slight year-on-year decline, confirming that real overseas demand is concentrated in semi-finished goods rather than finished products.
Market Divergence: US Leads, Traditional Markets Lag
Export performance in the first five months shows stark divergence. The US market became the largest growth driver, with export growth widening by 15 percentage points year-on-year. The meeting between Chinese and US leaders stabilized expectations, and destocking by foreign brands boosted procurement from China.
In contrast, the EU, Japan, and South Korea saw weakening momentum. The EU struggles with high energy costs and inflation, dampening consumer spending on apparel. ASEAN, Japan, and South Korea also reduced imports due to regional tensions and rising energy prices. This pattern means future growth will rely more heavily on a single market, increasing risk concentration.
Upstream Resilience vs. Apparel Struggles: Two Sides of Supply Chain Advantage
Detailed data for the first five months shows a clear divide. Yarn exports grew 6.6%, fabric exports only dipped 0.5%, and textile products rose 2.6%. In contrast, apparel and accessories fell 1.6%.
Foreign brands now favor low-inventory strategies, reducing large long-term orders for finished garments and instead placing frequent, smaller orders for yarn and fabric. China's complete textile supply chain—from chemical fiber, spinning, dyeing, to finished products—offers unmatched delivery efficiency and quality. This is the core driver of upstream growth.
Apparel OEM, however, has low barriers to entry. Countries like Bangladesh and Vietnam are increasingly substituting China in low-end garment production. For buyers, this means upstream supply chain stability is more critical than ever.
H2 Challenges: Three Pressures and a Window for Transformation
Looking ahead, the global trade environment remains complex. The World Bank warns of continued pressures from energy price hikes, inflation, and tightening monetary policies. Weak consumer recovery in Europe and the US, rising production costs, and fragmented global trade patterns will test the industry.
Yet, the June rebound provides confidence and a clear direction. The era of low-price, volume-driven exports is over. A complete supply chain, product innovation, and diversified global presence are key to navigating the cycle.