The latest customs data for the first half of 2026 offers a clear window into the resilience of China's textile and apparel industry. Total exports reached $145.96 billion, up 1.4% year-on-year. While the headline figure is modest, the structural breakdown reveals a profound shift in growth momentum—upstream raw materials and intermediate goods are taking the lead, while traditional apparel exports enter a prolonged adjustment phase.
Structural divergence in data
In USD terms, textile exports totaled $73 billion in H1, up 3.5% YoY, significantly outpacing apparel exports which fell 0.7%. The gap widened in June: textile exports surged 12.2% YoY versus apparel's 3.2%. In RMB terms, textiles declined only 0.1% while apparel plummeted 4.2%. Textiles and apparel now account for roughly equal shares of total exports, rewriting the traditional model where apparel drove demand and fabrics followed. Upstream orders are becoming the industry's key buffer against external volatility.
June's data deserves special attention. Total exports hit $29.27 billion, up 14.3% month-on-month, with apparel surging 21%—the highest monthly growth this year. The rebound was driven by early autumn-winter stockpiling, especially from US brands restocking after inventory clearance.
Market divergence: US dominates, EU-Japan-Korea weakens
Global demand is experiencing a stark divide. The US market emerged as the biggest growth driver, with export growth expanding 15 percentage points YoY. Improved bilateral relations following the summit, combined with brand inventory cycle bottoming, has reinforced US reliance on Chinese supply chains. In contrast, traditional markets like EU, Japan and Korea continue to weaken. The EU is mired in high energy costs and inflation, depressing consumer apparel spending. ASEAN, Japan and Korea are also constrained by regional tensions and rising energy prices, reducing their imports from China. This comparison clearly shows that China's textile and apparel export base is concentrating on a single core market, raising risk concentration.
Upstream resilience: An inevitable outcome of chain advantages
Detailed data for the first five months further confirms the divergence. Yarn exports grew 6.6% YoY, fabric fell only 0.5%, textile products rose 2.6%, while apparel and accessories dropped 1.6%. This pattern is no accident. Overseas brands now adopt low-inventory, high-frequency procurement, reducing large long-term apparel orders in favor of frequent purchases of semi-finished goods like yarn and fabric to maintain supply chain flexibility. China's one-stop capabilities from chemical fiber, spinning, dyeing to finished products—with unmatched delivery efficiency and quality—underpin the sustained growth of upstream textiles. In contrast, the apparel OEM sector has low entry barriers and is plagued by international capacity diversion and price competition. Emerging producers in Southeast Asia and South Asia continue to erode China's apparel OEM margins. This structural pressure is unlikely to reverse soon.
Practical recommendations
For buyers - Focus on delivery stability of upstream fabric and yarn suppliers, especially during peak autumn-winter stocking seasons. Locking capacity early can hedge price volatility. - Evaluate suppliers' ability to integrate fabric procurement and garment processing to reduce logistics and communication costs. - Adopt short-cycle, small-batch order models for apparel to lower inventory pressure while leveraging China's quick-response supply chain.
For exporters - Expand product lines upstream, increasing the share of yarn and fabric exports to build competitive moats and avoid price wars in apparel OEM. - Deepen US market presence while actively exploring emerging markets like the Middle East and Latin America to reduce reliance on a single market. - Monitor RMB exchange rate fluctuations and use financial tools like forward contracts to lock in profits.
The H1 2026 performance—stable total volume, structural divergence, and month-end rebound—validates the industry's resilience and signals a clear transition. The era of low-price, high-volume exports is over. Only by leveraging the complete industrial chain, product innovation, and global diversification can the industry find a path to stable growth amid uncertainty.