China's textile and apparel exports reached $145.9 billion in the first half of 2026, up 1.4% year-on-year, according to customs data released on July 14. This stability came despite global inflation and geopolitical tensions. The standout figure was June's monthly export surge of 14.3% to $29.27 billion, signaling a turning point driven by autumn-winter restocking.
June's Turning Point: Restocking Drives Export Rebound
In June, textile exports hit $13.52 billion, up 12.2% year-on-year and 7.4% month-on-month. Apparel exports reached $15.75 billion, up 3.2% year-on-year and a sharp 21% month-on-month. The rebound reflects completed inventory destocking by overseas brands, combined with eased shipping costs and a temporary de-escalation in the Middle East. In RMB terms, total H1 exports fell 2.2% to 1.012 trillion yuan, but June alone saw both monthly and annual growth, indicating real demand recovery despite currency headwinds.
Market Divergence: US Leads, EU and Japan Lag
Data for the first five months reveals a fragmented global demand landscape. The US market was the biggest growth driver, with export growth expanding by 15 percentage points compared to last year. Improved bilateral relations and brand restocking boosted Chinese supply chain orders. In contrast, the EU, Japan, and South Korea saw weakening demand. The EU's high energy costs depressed consumer spending, while ASEAN and Northeast Asian markets faced regional instability and rising energy prices. This underscores the need for exporters to diversify markets.
Upstream Resilience vs. Downstream Pressure
Product structure divergence was a key theme. Yarn exports grew 6.6% year-on-year, fabric exports dipped only 0.5%, and textile products rose 2.6%. Apparel exports fell 1.6%. Overseas brands are shifting to low-inventory, high-frequency procurement, favoring semi-finished goods like yarn and fabric over long-run garment orders. China's complete supply chain—from chemical fiber to dyeing to finished products—offers unmatched delivery speed and quality. However, garment manufacturing faces low barriers to entry, international capacity diversion, and price competition.
H2 Challenges and Strengths
The World Bank warns of continued pressure from high energy prices, inflation, and monetary tightening. Western consumer recovery remains weak, and trade fragmentation intensifies competition. Yet China's supply chain resilience was proven in June: once demand returns, domestic capacity responds quickly. For H2, companies should focus on three priorities: lock in yarn and fabric orders ahead of the autumn-winter peak; expand into the US and emerging markets like the Middle East and Latin America; and shift from price-based competition to product innovation and functional differentiation.