China's textile and apparel foreign trade in the first half of 2026 delivered a seemingly stable but structurally divergent report card. According to customs data, total exports from January to June reached $145.96 billion, up only 1.4% year-on-year. However, June exports alone hit $29.27 billion, surging 14.3% month-on-month, marking a key turning point for the year.
Structural Divergence Behind the Data
Behind the stable total, upstream and downstream segments performed very differently. Textile exports reached $73 billion, up 3.5% year-on-year, with yarn exports growing 6.6% and fabric exports only slightly down 0.5%. Textile products rose 2.6%. In contrast, apparel exports were $72.96 billion, down 0.7%, though the decline narrowed by 0.9 percentage points from last year.
This divergence is not accidental. Overseas brands are adopting low-inventory strategies, reducing large long-term apparel orders while increasing frequent purchases of semi-finished products like yarn and fabric. China's complete industrial chain from chemical fiber to finished goods provides unmatched delivery efficiency and product quality, underpinning the sustained growth of upstream textile categories.
June Rebound: Autumn/Winter Stocking and Market Recovery
June export data became the highlight of the semi-annual report. Textile and apparel exports reached $29.27 billion, up 7.2% year-on-year and 14.3% month-on-month. Textile exports hit $13.52 billion, up 12.2% year-on-year and 7.4% month-on-month; apparel exports were $15.75 billion, up 3.2% year-on-year and 21% month-on-month.
This rebound was not isolated. Overseas autumn/winter stocking demand was released, combined with short-term positives like falling shipping costs and easing Middle East tensions. In RMB terms, June exports reached 200.25 billion yuan, with both year-on-year and month-on-month increases, and the fabric sector grew most prominently.
US Market Becomes Biggest Growth Driver, EU/Japan/South Korea Remain Weak
From a market perspective, demand patterns show significant divergence. In the first five months, the US market became the biggest growth driver, with export growth expanding 15 percentage points compared to last year. The China-US summit stabilized market expectations, and as overseas brands completed inventory destocking, procurement from China increased.
In contrast, traditional mature markets like the EU, Japan, and South Korea continued to weaken. The EU is mired in inflation from high energy costs, dampening consumer apparel spending. ASEAN, Japan, and South Korea are constrained by regional tensions and rising energy prices, reducing imports from China. This shift is reshaping China's export landscape.
Profit Pressure Under RMB Denomination
Switching to RMB statistics, exchange rate fluctuations caused notable disturbances. Total exports in the first half were 1,012.22 billion yuan, down 2.2% year-on-year. Textile exports were 506.42 billion yuan, only down 0.1%, showing strong resilience; apparel exports were 505.8 billion yuan, down 4.2%, squeezing apparel manufacturers' profits.
This means that despite stable export volumes in USD terms, RMB appreciation is eroding corporate profits. For foreign trade enterprises, exchange rate risk management is becoming as crucial as order-taking capability.
External Challenges and Industrial Confidence
Looking ahead, the global economic environment remains complex. The World Bank warns of sustained triple pressures from energy price hikes, high inflation, and tightened monetary policies. Weak recovery in European and American consumer demand, rising production costs, and fragmented global trade patterns will continue to challenge the industry.
However, China's textile and apparel foreign trade resilience lies in its complete industrial chain. The one-stop capability from chemical fiber to finished goods makes Chinese capacity difficult to replace. The industry is transitioning from low-price volume to precision operations focused on product innovation and global diversification.