China's textile and apparel exports in the first half of 2026 delivered a report card of 'stable total volume with structural divergence'. Customs data shows that from January to June, total exports reached $145.96 billion, up 1.4% year-on-year. This figure indicates that despite high global inflation and complex geopolitics, the foundation of China's textile and apparel foreign trade remains solid. However, a closer look reveals stark differences between upstream and downstream sectors.
Total volume steady, June marks a turning point
In USD terms, the first-half export scale remained at a historically high level. Textile exports reached $73 billion, up 3.5% year-on-year, demonstrating the resilience of upstream raw materials and intermediate goods orders. Apparel exports totaled $72.96 billion, down slightly by 0.7%, with the decline narrowing by 0.9 percentage points compared to the same period last year, indicating some easing of downward pressure on finished garments.
The most notable data point is June's single-month performance. Exports that month hit $29.27 billion, up 7.2% year-on-year and a sharp 14.3% month-on-month increase, marking the official start of the overseas autumn-winter stocking season. Textile exports reached $13.52 billion, up 12.2% year-on-year and 7.4% month-on-month; apparel exports totaled $15.75 billion, up 3.2% year-on-year and a surge of 21% month-on-month, reflecting concentrated replenishment demand for garments. This rebound signal is a significant boost to industry confidence.
In RMB terms, exchange rate fluctuations created some distortion. Cumulative first-half exports were 1,012.22 billion yuan, down 2.2% year-on-year. Textiles reached 506.42 billion yuan, down only 0.1%, showing strong risk resistance; apparel totaled 505.8 billion yuan, down 4.2%, reflecting profit pressure on garment manufacturers. June also saw a recovery in RMB terms, with monthly exports reaching 200.25 billion yuan. The fabric sector showed strong growth, and while apparel fell slightly year-on-year, the over 20% month-on-month increase confirmed real overseas procurement demand.
Market divergence, US becomes largest growth driver
Looking at overseas market performance in the first five months, global demand patterns show significant fragmentation. The US market became the largest source of growth for the industry in the first half, with the growth rate of China's textile and apparel exports to the US expanding by 15 percentage points compared to the same period last year. This is driven by two factors: first, the meeting between Chinese and US leaders stabilized expectations for bilateral relations; second, after overseas brands completed inventory destocking, buyers increased procurement from Chinese supply chains.
In contrast, traditional mature markets like the EU, Japan, and South Korea continued to see weakening growth momentum. The EU is mired in inflation problems caused by high energy costs, dampening consumer willingness to spend on apparel. ASEAN, Japan, and South Korea, constrained by regional tensions and rising energy prices, also saw reduced imports of textiles and apparel from China. Additionally, the temporary easing of the Middle East situation and falling shipping costs were important short-term factors boosting overall export recovery in June.
Product structure highlights supply chain advantages, garment track under pressure
Sub-category data for the first five months clearly shows the vastly different operating conditions of upstream and downstream sectors. Orders for textile intermediate goods performed strongly: yarn exports grew 6.6% year-on-year, while fabric exports fell only 0.5%; finished textile product exports rose 2.6%. In contrast, exports of garments and clothing accessories fell 1.6% year-on-year.
The root cause of this divergence is the low-inventory strategy widely adopted by overseas brands. They are reducing large, long-term garment orders and instead sourcing yarns, fabrics, and other semi-finished products more frequently, allowing flexible responses to market changes. China possesses the world's most complete textile industry chain, from chemical fiber, spinning, dyeing, to finished products, offering one-stop service with delivery efficiency and product quality that are hard to replicate elsewhere. This is the core reason for sustained growth in upstream textile categories. The garment OEM track, however, has low entry barriers and faces severe issues of capacity diversion and price competition, making long-term pressure hard to reverse in the short term.
External challenges remain, industry fundamentals strong
Looking to the second half of the year, the global trade environment remains complex. The World Bank has warned that the global economy will continue to face the triple pressures of rising energy prices, high inflation, and tightened overseas monetary policies, leading to weakening global consumption growth. Slow recovery in end-consumer demand in Europe and the US, persistently high production costs, and capacity competition from fragmented global trade patterns will continue to test industry players.
The first half of 2026 saw textile and apparel foreign trade follow a pattern of 'stable total volume, structural divergence, and a month-end rebound'. The June export rebound has injected confidence into the industry and clearly points the direction for transformation. The era of relying on low prices and high volume for crude expansion is over. A complete industry chain, product innovation, and global diversified布局 are the core levers for the industry to navigate cycles.