China's textile and apparel exports in the first half of 2026 delivered a stable aggregate but revealed deep structural divergence. According to the latest General Administration of Customs data, cumulative exports from January to June reached $145.96 billion, up 1.4% year-on-year, still at a historically high level. However, the more telling story lies in the gap between upstream and downstream: textile exports hit $73 billion, up 3.5%, while apparel exports were $72.96 billion, down 0.7%. The two segments are nearly equal in size, but one is expanding and the other contracting, directly reflecting a fundamental shift in global sourcing logic.
June data signals a turning point
June's export performance exceeded market expectations, marking a key inflection point for the first half. Monthly exports reached $29.27 billion, up 7.2% year-on-year and surging 14.3% month-on-month, as overseas fall-winter restocking kicked off. Textile exports alone were $13.52 billion, up 12.2% YoY and 7.4% MoM; apparel exports reached $15.75 billion, up only 3.2% YoY but soaring 21% MoM, indicating a concentrated release of replenishment orders at quarter-end.
From a renminbi perspective, exchange rate fluctuations materially eroded profitability. Cumulative first-half exports were RMB 1,012.22 billion, down 2.2% YoY. Textiles were RMB 506.42 billion, down only 0.1%, showing strong resilience; apparel was RMB 505.8 billion, down 4.2%, putting clear pressure on garment manufacturers' margins. June renminbi-denominated data also rebounded, with monthly exports reaching RMB 200.25 billion, led by strong fabric sector growth.
Overseas markets diverge sharply; US emerges as sole growth engine
Looking at export destination data for the first five months, global demand patterns show significant fragmentation. The US market became the largest incremental driver in the first half, with export growth to the US expanding 15 percentage points compared to the same period last year. Improved bilateral relations following the US-China summit, combined with depleted inventory levels at overseas brands, prompted buyers to increase sourcing from Chinese supply chains.
In contrast, traditional mature markets like the EU, Japan, and South Korea continued to lose momentum. The EU remains mired in high energy costs and inflation, suppressing consumer apparel spending. ASEAN, Japan, and South Korea face dual headwinds from regional tensions and rising energy prices, leading to reduced imports from China. Additionally, the temporary easing of Middle East tensions and lower shipping costs provided short-term boosts to June's overall export recovery.
Product structure reveals polarized supply chain dynamics
Disaggregated data for the first five months vividly illustrates the divergent fortunes of upstream and downstream segments. Yarn exports grew 6.6% year-on-year, fabric exports dipped only 0.5%, and finished textile product exports rose 2.6%. In contrast, apparel and clothing accessories exports fell 1.6%.
The root cause lies in overseas brands' adoption of low-inventory strategies, reducing large long-term garment orders while increasing frequent purchases of semi-finished goods like yarn and fabric. China's complete textile industrial chain—from chemical fibers, spinning, dyeing to finished products—offers unmatched delivery efficiency and product quality that competing regions cannot easily replicate. This is the core reason upstream textile categories continue to grow. Garment OEM, however, has low entry barriers and faces severe international capacity diversion and price competition, making its prolonged pressure unlikely to reverse soon.
Challenges and strengths in the second half
Looking ahead, the global trade environment remains complex. The World Bank warns that energy price hikes, persistent inflation, and tightening monetary policies abroad will continue to suppress global consumption growth. Weak recovery in end-user demand in Europe and the US, rising input costs, and fragmentation of global trade patterns leading to capacity competition will all test industry players.
Yet June's export rebound has injected confidence and clearly signaled the direction of transformation. The era of low-price, volume-driven exports is over. A complete industrial chain, product innovation, and diversified global deployment are the core levers for navigating cycles. While external uncertainties persist in the second half, China's deep-rooted textile industry base provides solid support for stable export performance, provided companies adjust product and market strategies in time.