China's textile and apparel foreign trade data for the first half of 2026 reveals a steady overall scale but significant internal divergence. Customs data shows total exports reached $145.96 billion from January to June, up 1.4% year-on-year. While modest, this growth underscores the resilience of China's textile supply chain amid global inflation and geopolitical uncertainties.
Upstream Materials Show Strong Resilience
Detailed figures highlight contrasting trends between upstream and downstream segments. Textile exports hit $73 billion, up 3.5%, while apparel exports stood at $72.96 billion, down 0.7%. Yarn exports surged 6.6%, fabric exports dipped only 0.5%, and textile products rose 2.6%. These numbers reflect a shift in overseas brand procurement strategies: to cope with uncertainty, brands are reducing large long-term apparel orders and increasing high-frequency purchases of semi-finished materials like yarn and fabric. China's complete textile chain—from chemical fiber, spinning, dyeing to finished products—offers delivery efficiency and quality that other regions struggle to match.
June Export Rebound and Autumn-Winter Restocking
Monthly data captures market sentiment shifts. June exports reached $29.27 billion, up 7.2% YoY and 14.3% MoM. Textile exports were $13.52 billion, up 12.2% YoY and 7.4% MoM; apparel exports hit $15.75 billion, up 3.2% YoY and a sharp 21% MoM. This rebound was driven by the start of autumn-winter restocking. For buyers, the month-on-month data is more telling than year-on-year figures, signaling the beginning of an inventory replenishment cycle. In RMB terms, June exports also rose both YoY and MoM, confirming real demand.
US Market Emerges as Key Growth Driver
From a market perspective, global demand shows clear divergence. In the first five months, the US became the largest growth contributor, with export growth expanding 15 percentage points compared to last year. The stabilization of bilateral relations and completion of brand inventory destocking prompted buyers to increase sourcing from China. In contrast, traditional mature markets like the EU, Japan, and South Korea weakened. The EU faces high energy costs and subdued consumer spending; ASEAN, Japan, and South Korea saw reduced imports from China due to regional tensions and energy prices. A temporary easing of Middle East tensions and lower shipping costs also supported the June recovery.
Apparel Sector Under Pressure
The weakness in apparel exports reflects structural challenges, not short-term fluctuations. Exports fell 0.7% YoY, though the decline narrowed by 0.9 percentage points from last year. In RMB terms, apparel exports dropped 4.2%, squeezing manufacturers' margins. The apparel OEM sector has low entry barriers, leading to intense competition from Vietnam and Bangladesh. Weak end-consumer demand in Europe and the US further suppresses brand purchasing. For factories, relying solely on OEM profits is no longer sustainable.