In the first half of 2026, China's textile and apparel exports reached $145.96 billion, up 1.4% year-on-year. This figure masks a strong rebound in June, when exports hit $29.27 billion, surging 7.2% YoY and 14.3% MoM, driven by autumn-winter stocking. However, the H1 data reveals significant structural divergence: upstream textile exports outperformed downstream apparel, and overseas markets showed stark disparities.
Data Signals
Customs data shows textile exports at $73 billion (up 3.5% YoY) while apparel exports reached $72.96 billion (down 0.7% YoY). This gap highlights a key trend: global brands are shifting to low-inventory models, preferring high-frequency orders for yarn and fabrics over large long-term garment orders. Yarn exports grew 6.6% YoY, while fabric exports dipped only 0.5%. This resilience stems from China's integrated textile chain—from fiber, spinning, and dyeing to finished products—which offers unmatched delivery efficiency and quality.
June data reinforces this view: textile exports were $13.52 billion (up 12.2% YoY, 7.4% MoM), while apparel exports reached $15.75 billion (up 3.2% YoY, 21% MoM). The surge in apparel orders suggests seasonal restocking rather than robust consumer demand recovery.
In RMB terms, total exports were 1,012.22 billion yuan, down 2.2% YoY. Textiles edged down only 0.1% to 506.42 billion yuan, showing strong resilience, while apparel fell 4.2% to 505.8 billion yuan, squeezing garment manufacturers' margins.
Market Divergence
By destination, the US market was the largest growth driver, with export growth expanding 15 percentage points compared to last year. Improved bilateral relations and destocking by US brands boosted procurement from China.
In contrast, the EU, Japan, and South Korea saw weakening demand due to high energy costs and inflation. The EU's clothing consumption remains subdued, while ASEAN and East Asian markets are constrained by regional tensions and energy prices. The temporary easing of Middle East tensions and lower shipping costs provided short-term support for June exports.
Upstream vs. Downstream
Detailed data from January to May shows upstream intermediate goods outperforming downstream apparel. Yarn exports grew 6.6%, fabrics dipped only 0.5%, and textile products rose 2.6%, while apparel and accessories fell 1.6%. This divergence reflects low entry barriers and intense price competition in garment manufacturing, where international capacity shifting is more pronounced. China's upstream advantages—complete chain from fiber to finished fabric—make it difficult for buyers to find alternatives.
H2 Outlook
The World Bank warns of continued headwinds from energy prices, inflation, and tight monetary policy globally. Consumer demand recovery in Europe and the US remains weak, and trade fragmentation adds uncertainty.
However, the June rebound offers hope. Whether autumn-winter restocking sustains into H2 depends on restocking cycles and consumer demand. Leveraging China's deep industrial base, companies can pivot to higher-value intermediate goods and diversify markets to maintain export stability.