China's textile and apparel exports reached $145.96 billion in H1 2026, up 1.4% YoY, but structural divergence was stark. June exports hit $29.27 billion, up 7.2% YoY and 14.3% MoM, marking a key inflection point driven by autumn/winter restocking.
Structural Divergence: Upstream Stable, Downstream Strained
Textile exports totaled $73 billion, up 3.5% YoY, with yarn up 6.6%, fabric down only 0.5%, and textile products up 2.6%. Apparel exports reached $72.96 billion, down 0.7% YoY, though the decline narrowed by 0.9 percentage points from last year. In June alone, textile exports hit $13.52 billion, up 12.2% YoY; apparel exports reached $15.75 billion, up only 3.2% YoY but surging 21% MoM, indicating concentrated replenishment demand.
In RMB terms, cumulative exports fell 2.2% to 1,012.22 billion yuan, with currency fluctuations squeezing profits. Textiles were 506.42 billion yuan, down 0.1%; apparel was 505.8 billion yuan, down 4.2%, pressuring garment manufacturers' margins.
Market Divergence: US Hot, EU/Japan/Korea Cold
In the first five months, the US market was the biggest growth driver, with export growth accelerating by 15 percentage points YoY. The China-US summit stabilized expectations, and overseas brands completed inventory destocking, boosting procurement from China. The EU struggled with high energy costs and inflation, dampening clothing demand. ASEAN, Japan, and Korea saw reduced imports from China due to regional tensions and rising energy prices. A temporary easing of Middle East tensions and lower shipping costs provided short-term support for June exports.
Supply Chain Advantage: Why Upstream is More Resilient
Overseas brands are adopting low-inventory strategies, reducing large long-term apparel orders and instead procuring semi-finished products like yarn and fabric more frequently. China's integrated supply chain—from chemical fibers, spinning, dyeing, to finished goods—offers unmatched delivery efficiency and quality. This explains the resilience of upstream yarn and fabric orders. The apparel OEM segment, with low entry barriers, faces intense international competition and price wars, making its long-term pressure hard to reverse.
Outlook: Challenges and Strengths
The World Bank warns of triple pressures from energy prices, inflation, and monetary tightening. EU and US consumer recovery remains weak, production costs are high, and global trade fragmentation intensifies competition. Yet June's export rebound injects confidence. The era of low-price, volume-driven exports is over. A complete supply chain, product innovation, and global diversification are key to navigating cycles.