In the first half of 2026, China's textile and apparel exports delivered a mixed performance: total volume stable, but internal divergence intensified. According to latest customs data, exports reached $145.96 billion from January to June, up 1.4% YoY, maintaining a historically high level. However, the real highlight was June's unexpected rebound—exports hit $29.27 billion, surging 7.2% YoY and 14.3% MoM, signaling the start of overseas autumn-winter restocking.
Structural Divergence: Upstream Strong, Apparel Weak
The most notable feature of H1 was product divergence. Textile exports totaled $73 billion, up 3.5% YoY, with yarn up 6.6% and fabrics down only 0.5%. In contrast, apparel exports were $72.96 billion, down 0.7% YoY, though the decline narrowed by 0.9 percentage points. Behind this lies a shift in overseas sourcing: international brands now favor low-inventory strategies, reducing large long-term garment orders in favor of frequent yarn and fabric purchases. China's complete supply chain—from chemical fiber to spinning, dyeing, and finished goods—offers delivery efficiency and quality that competitors struggle to match. Garment OEMs, with lower entry barriers, face capacity diversion and price competition.
June Data: Restocking Drives Recovery
June was the standout month. Textile exports hit $13.52 billion, up 12.2% YoY and 7.4% MoM; apparel exports reached $15.75 billion, up 3.2% YoY and 21% MoM. In RMB terms, cumulative exports were 1.01222 trillion yuan, down 2.2% YoY, but June alone saw 200.25 billion yuan, rising both YoY and MoM. Exchange rate fluctuations caused some distortion, but June's strong sequential growth confirms genuine overseas demand recovery.
U.S. Market Shines, EU and Japan Lag
Global demand patterns diverged sharply. The U.S. market was the biggest growth driver, with export growth widening by 15 percentage points YoY. The U.S.-China summit stabilized expectations, and destocking completion boosted sourcing from China. Conversely, the EU, Japan, and South Korea remained weak. The EU's high energy costs dampened consumer spending; ASEAN and Japan-Korea faced regional tensions and energy price pressures. The easing of Middle East tensions and lower shipping costs also supported June's recovery.
Outlook: Challenges Remain, Supply Chain Advantage Key
Looking ahead, the global trade environment stays complex. The World Bank warns of triple pressures: energy prices, inflation, and monetary tightening. Weak Western consumer demand, rising production costs, and fragmented trade patterns will test the industry. Yet H1 2026's pattern—stable total volume, structural divergence, month-end recovery—points to a clear direction. The era of low-price volume exports is over. Full supply chains, product innovation, and global diversification are the keys to navigating the cycle. For buyers and exporters, positioning and optimizing supply chains will determine growth quality in H2.