$145.96 billion—that's the total export figure for China's textile and apparel sector in the first half of 2026. Against a backdrop of global inflation and geopolitical turbulence, this represents a 1.4% year-on-year increase, indicating a stable foundation. But the real story lies in the structure: textile exports reached $73 billion, up 3.5%, while apparel exports stood at $72.96 billion, down 0.7%. This divergence reveals a fundamental shift in global procurement logic.
June Turning Point: Autumn-Winter Stocking Drives Rebound
June's monthly data became the biggest highlight of the first half. Exports hit $29.27 billion, up 7.2% year-on-year and surging 14.3% month-on-month, far exceeding expectations. This rebound was no accident—autumn-winter stocking by overseas brands, falling shipping costs, and a temporary easing of Middle East tensions all converged.
Breaking it down, textile exports reached $13.52 billion, up 12.2% YoY and 7.4% MoM; apparel exports hit $15.75 billion, up 3.2% YoY and a staggering 21% MoM. The sharp monthly increase in apparel is particularly noteworthy: it shows that overseas buyers haven't abandoned garment orders entirely, but have compressed their ordering cycles into shorter, more concentrated bursts.
In RMB terms, cumulative exports for the first half fell 2.2% to 1.012 trillion yuan, reflecting exchange rate erosion. But June alone saw exports of 200.25 billion yuan, with both YoY and MoM growth, and the fabric segment performed especially well. For factories, the weaker RMB actually widens profit margins on dollar-denominated orders.
Market Divergence: US Carries Growth, Europe-Japan-Korea Remain Weak
Export data for the first five months shows the US market as the biggest growth driver. Export growth to the US expanded by 15 percentage points compared to the same period last year. This stems from two forces: the US-China summit stabilized bilateral trade expectations, and overseas brands, having largely completed inventory destocking, are ramping up procurement from Chinese supply chains.
In contrast, traditional mature markets like the EU, Japan, and Korea performed poorly. The EU is mired in high energy costs driving inflation, dampening consumer apparel spending. ASEAN, Japan, and Korea are constrained by regional tensions and rising energy prices, reducing their imports from China.
This pattern suggests that over-reliance on a single market is risky. While the US market's performance is encouraging, any future deterioration in US-China relations could expose the industry to concentration risk. Exporters need to accelerate expansion into emerging markets like the Middle East, Latin America, and Africa to diversify destinations.
Supply Chain Advantage: Upstream Resilience, Garment OEM Under Pressure
Detailed category data for the first five months confirms the divergent performance along the value chain. Yarn exports grew 6.6% YoY, fabric edged down just 0.5%, textile products rose 2.6%, while apparel and accessories fell 1.6%.
The root cause is a shift in overseas brand procurement strategy. Brands are now operating with low inventory levels, reducing large long-term garment orders in favor of frequent purchases of semi-finished goods like yarn and fabric to shorten supply chain response times. China's one-stop capability—from chemical fiber, spinning, dyeing to finished products—makes its delivery efficiency and product quality hard to replicate elsewhere. This is the bedrock of upstream growth.
By contrast, the garment OEM segment has lower entry barriers and faces intense competition from capacity relocation to Vietnam and Bangladesh, as well as domestic price wars. Although the decline in apparel exports narrowed by 0.9 percentage points YoY, long-term pressure remains. For garment factories, transitioning to higher value-added products—like functional or eco-friendly apparel—is no longer optional.
Outlook: Opportunities and Challenges Ahead
Looking to the second half, the global trade environment remains complex. The World Bank warns of continued pressure from energy price hikes, persistent inflation, and monetary tightening. Consumer recovery in Europe and the US is sluggish, production costs remain elevated, and the fragmentation of global trade will intensify capacity competition.
Yet June's rebound has injected confidence. The autumn-winter stocking cycle is still underway, and falling shipping costs support export recovery. Most importantly, the completeness and resilience of China's textile supply chain cannot be quickly replicated by other countries. If companies adjust product structures and market layouts in time, the industry's export volume still has a solid foundation for stable operation.