In the first half of 2026, China's printed and dyed fabric exports presented a complex picture of 'volume growth with price decline.' Customs data show total exports reached USD 35.175 billion, up 1.99% year-on-year, but the growth rate slowed by 0.92 percentage points from Q1. Behind this data lies a clear divergence between woven and knitted fabrics: woven fabric export volume grew 1.98% while average price fell 1.08%, a typical volume-for-price trade-off; knitted fabrics saw export value rise 3.69% with both volume and price increasing, demonstrating stronger resilience. For buyers, this means pricing power and supply stability now differ significantly by fabric type.
Category Divergence: Woven Under Pressure, Knitted Leads
Woven printed and dyed fabrics reached USD 19.156 billion in H1 exports, up only 0.62%, with volume of 20.811 billion meters and an average price of USD 0.92/meter, down 1.08%. The price decline directly squeezed factory profit margins, especially for SMEs focused on conventional polyester-cotton and pure cotton woven products, which face the dilemma of 'stable orders but thinner profits.' In contrast, knitted fabrics exported USD 16.019 billion, up 3.69%, with volume of 3.3759 million tons and average price edging up 0.25%. Knitted fabrics, with their elasticity and comfort, better match the consumption trend toward athleisure and homewear, showing stronger demand resilience than woven formal fabrics. This signals to exporters: if product mix leans toward woven, beware of intensifying price competition; knitted products, especially functional ones, remain a growth highlight.
Market Landscape: ASEAN and RCEP Dividends Continue
Geographically, exports to the top ten markets totaled USD 19.141 billion, up 4.86%, accounting for 54.42% of total exports. Vietnam, Bangladesh, and Cambodia together accounted for 32.79%, up 1.81 percentage points from Q1, as Southeast Asian apparel capacity expansion continues to drive upstream fabric demand. Cambodia led with a 13.92% year-on-year increase, while Vietnam grew only 0.52%, indicating intra-regional demand divergence. Exports to ASEAN reached USD 12.577 billion, up 3.06%, and to RCEP members USD 13.044 billion, up 2.74%, both outperforming the overall level. This structural advantage means that tariff reductions and regional supply chain synergy from free trade agreements are becoming key buffers against weak US and European demand. Exporters should continue to deepen these markets, especially watching order shifts to emerging production bases like Cambodia and Indonesia.
External Risks: Trade Barriers and Geopolitical Conflicts
The second half outlook is far from optimistic. The IMF projects global economic growth to slow from 3.5% in 2025 to 3% in 2026, with goods trade volume growth falling to 3.5%. Meanwhile, new US Section 301 tariffs on China, the EU's removal of the de minimis exemption for small parcels, and rising ESG and carbon-related green barriers are pushing up compliance costs. Geopolitical conflicts in the Middle East disrupted shipping in Q2, global consumption recovery remains weak, and new printing and dyeing capacity in multiple countries has intensified international competition, collectively slowing export growth. For factories, this means the low-price, high-volume model is no longer sustainable. Compliance costs must be factored into quotations, and green certifications should be accelerated; otherwise, they risk being excluded from European and American orders.
Domestic Demand Hedge: Policy Window and Structural Contradictions
The domestic market is seen as a key buffer, but a supply-demand structural contradiction persists. The State Council's '15th Five-Year Plan for Expanding Consumption' issued in July signals clear policy support for domestic demand, with home textiles, sportswear, and industrial textiles seen as promising tracks. A large middle-income group and rising per capita GDP provide a long-term demand base for the printing and dyeing industry. However, competition in the domestic market is equally fierce. If companies do not adjust their product mix, they risk falling into low-price involution. Treating domestic sales as a 'safe harbor' is unrealistic; rather, it should be seen as a 'testing ground' for high-value-added, functional, and green products to build differentiated advantages.
Practical Recommendations
For Buyers - Focus on the supply stability of knitted fabrics, as their volume and price performance is superior; consider locking in long-term production capacity. - In woven fabric procurement, use the current price downturn to sign quarterly floating price contracts to hedge against potential price rebounds. - Prioritize suppliers with ESG or carbon footprint certifications to meet compliance requirements from end customers in Europe and the US.
For Exporters - Treat ASEAN and RCEP markets as key growth areas, especially monitoring order transfers to emerging bases like Cambodia and Indonesia. - Increase R&D investment in functional knitted fabrics to enhance added value and escape low-price competition. - Establish a green supply chain traceability system, preparing early for mechanisms like the EU's Carbon Border Adjustment Mechanism to reduce future compliance costs.
In summary, H1 exports demonstrated industry resilience, but external pressures in H2 cannot be underestimated. Relying on domestic policy support, deepening FTA market engagement, and accelerating green transformation will be key paths for the industry to navigate the cycle.