China's textile and apparel exports in the first half of 2026 showed stable volumes but deepening internal divergence. According to China Customs data released on July 14, cumulative exports from January to June reached $145.96 billion, up 1.4% year-on-year, maintaining a historically high level. This figure reflects the strong growth of upstream intermediates against the sustained pressure on downstream apparel, revealing subtle shifts in global supply chain reliance on China's textile industry.
June Exports Surge Beyond Expectations, Autumn-Winter Orders Released
Monthly data became the highlight of H1. June exports hit $29.27 billion, up 7.2% YoY and surging 14.3% MoM. This rebound was not accidental—overseas brands' autumn-winter restocking cycle kicked off, coupled with short-term positives like falling shipping costs and a temporary easing of Middle East tensions, jointly driving export volumes.
By category, textile exports reached $13.52 billion, soaring 12.2% YoY and up 7.4% MoM; apparel exports hit $15.75 billion, up 3.2% YoY but surging 21% MoM, indicating concentrated restocking demand in June. The pattern of 'textiles outpacing apparel' aligns with the overall H1 trend.
In RMB terms, exchange rate fluctuations distorted export data. Cumulative H1 exports totaled 1,012.22 billion yuan, down 2.2% YoY, but textiles fell only 0.1%, highlighting strong resilience. Apparel exports reached 505.8 billion yuan, down 4.2% YoY, further squeezing profit margins for garment manufacturers.
U.S. Market Stands Out, Traditional Markets Falter
Overseas demand showed significant divergence. Data from the first five months reveals the U.S. market as the largest growth driver, with export growth to the U.S. expanding 15 percentage points compared to the same period last year. The China-U.S. summit stabilized bilateral expectations, and as overseas brands destocked, buyers increased procurement from Chinese supply chains, directly boosting exports.
Conversely, traditional mature markets like the EU, Japan, and South Korea weakened. The EU struggled with high energy costs and inflation, dampening consumer clothing demand; ASEAN, Japan, and South Korea faced dual pressures from regional tensions and rising energy prices, reducing imports from China. This 'East rises, West falls' market landscape requires exporters to reassess regional strategies.
Upstream Intermediates Show Resilience, Apparel OEM Faces Dilemma
Product structure differences directly reflect China's competitive advantages. In the first five months, yarn exports grew 6.6% YoY, fabric exports fell only 0.5%, and textile products rose 2.6%. In contrast, apparel and accessories exports dropped 1.6%.
This divergence stems from shifting overseas procurement strategies: brands adopt low-inventory operations, reducing large long-term apparel orders and instead frequently sourcing semi-finished goods like yarn and fabric. China's complete industrial chain—from chemical fiber, spinning, and dyeing to finished products—offers delivery efficiency and quality hard to replicate elsewhere. Thus, upstream categories have become a stabilizer for export growth.
Apparel OEM faces greater pressure. Low entry barriers, capacity relocation, and price competition have squeezed margins. For companies relying on apparel exports, transitioning to higher-value-added segments is urgent.
Challenges Remain in H2, Industrial Foundation Provides Support
Looking ahead to the second half, the global trade environment remains complex. The World Bank warns that triple pressures—rising energy costs, high inflation, and tightening monetary policy—will continue to suppress consumption growth. Weak recovery in European and American end-consumption, high production costs, and fragmented global trade patterns will test industry resilience.
However, China's textile industry has deep roots. A complete industrial chain, continuous product innovation, and diversified global deployment are the core tools to weather cycles. The June export rebound has injected confidence and clearly signaled the direction: the era of low-price, volume-driven exports is over. Only by deepening upstream advantages, expanding high-value products, and optimizing market structures can the industry maintain stability amid trade fluctuations.