In the first half of 2026, China's textile and apparel foreign trade delivered a report card characterized by stable volume and structural shifts. According to customs data, total exports from January to June reached $145.9 billion, a modest 1.4% year-on-year increase. This figure underscores the resilience of the upstream supply chain and the continued divergence in the downstream garment sector. June exports surged to $29.27 billion, a 14.3% month-on-month jump, signaling a key inflection point for the second half of the year.
Upstream Intermediate Goods Drive Growth
Textile exports in the first half totaled $73 billion, up 3.5% year-on-year, significantly outperforming apparel. Yarn exports grew 6.6%, while fabric exports dipped only 0.5%, reflecting robust demand for intermediate goods. This trend stems from a shift in overseas brand procurement strategies: moving from large-volume garment orders to frequent, smaller purchases of yarn and fabric to manage inventory risk. China's complete industrial chain, from chemical fiber to spinning and dyeing, offers efficient delivery and stable quality that other production bases cannot easily replicate.
In contrast, apparel exports fell 0.7% to $72.96 billion. While the decline narrowed by 0.9 percentage points from last year, structural pressures in garment processing persist. International capacity relocation and price competition continue to squeeze profit margins, particularly for small and medium enterprises reliant on traditional orders.
June Rebound Driven by Autumn-Winter Stocking
June's export performance was the highlight of the first half. Monthly textile and apparel exports hit $29.27 billion, up 7.2% year-on-year and 14.3% month-on-month. Textile exports rose 12.2% to $13.52 billion, while apparel exports surged 21% month-on-month to $15.75 billion. This marks the official start of the autumn-winter stocking season, especially in the US market, where brands are restocking after depleting inventories. In RMB terms, June exports reached 200.25 billion yuan, with both year-on-year and month-on-month growth, confirming real demand recovery.
US Market Emerges as Top Growth Driver
Regional demand patterns show clear divergence. In the first five months, the US market became the largest growth driver for Chinese textile and apparel exports, with growth rates expanding 15 percentage points compared to last year. The summit between Chinese and US leaders stabilized trade expectations, and as brand inventories bottomed out, buyers ramped up procurement from China. In contrast, traditional markets like the EU, Japan, and South Korea saw weaker demand due to high inflation and energy costs. A temporary easing of Middle East tensions and lower shipping costs also contributed to June's export recovery.
Industry Resilience Amid External Challenges
Looking ahead, the global trade environment remains complex. The World Bank warns that energy price hikes, persistent inflation, and monetary tightening will continue to suppress consumption growth. The US and European end-markets are slow to recover, and trade fragmentation intensifies capacity competition. However, China's textile industry is anchored by its complete supply chain and rapid response capabilities. The data from the first half of 2026 shows that the era of low-cost, volume-driven exports is over. Companies must pivot to product innovation, green manufacturing, and diversified market strategies.