Export growth slowed to 1.99%, yet the total of $35.175 billion still marked a record high for the period. Behind the H1 2026 data on printed and dyed fabric exports lies a subtle imbalance: woven fabric volume rose 1.98% while average price fell 1.08%—a classic case of selling more but earning less. Knitted fabrics, however, grew in both volume and price, with average price up 0.25%, demonstrating stronger resilience. This divergence is no accident; it signals that China's comparative advantage in the sector is shifting from 'scale' to 'flexibility' amid global supply chain restructuring.
Signals Behind the Numbers
Customs data show woven printed and dyed fabric exports reached $19.156 billion in H1, up only 0.62% year-on-year, with volume of 20.811 billion meters and average price of $0.92 per meter. Knitted fabric exports totaled $16.019 billion, up 3.69%, with volume of 3.3759 million tons and average price edging up. The volume-up-price-down trend in woven fabrics indicates that global pricing power for standard products is being diluted by newly added overseas capacity, especially in Southeast Asia and South Asia, where new lines focus on mid-to-low-end woven goods.
Knitted fabrics' strong performance aligns with sustained demand for athleisure apparel. Their short production cycles and quick-response capabilities match buyers' current inventory-reduction strategies. For domestic factories, this means being able to produce knitted fabrics is no longer a bonus but a ticket to order intake.
Regional Structural Dividends
Exports to the top ten markets reached $19.141 billion, up 4.86% year-on-year, 2.87 percentage points higher than the overall growth rate. Cambodia led with a 13.92% surge, while Vietnam grew only 0.52%. ASEAN exports totaled $12.577 billion, up 3.06%, accounting for 35.76% of the total; RCEP member states saw $13.044 billion, up 2.74%. The tariff benefits of RCEP are materializing, but Vietnam's slowdown warrants attention—its local dyeing capacity is ramping up, potentially reducing future demand for Chinese intermediate goods.
Geopolitical conflicts in the Middle East disrupted shipping and raised costs, while weak European and US demand pulled Q2 growth down by 0.92 percentage points from Q1. Nevertheless, China's complete industrial chain and reliable delivery helped sustain positive export momentum. For companies, growth in ASEAN is not automatic; it requires customized development for export-oriented local clients to secure long-term orders.
Domestic Policy Support
The IMF forecasts global growth to slow to 3% in 2026 and trade volume growth to 3.5%, making external demand contraction almost certain. Meanwhile, new US tariffs, EU removal of the de minimis exemption, and rising ESG and carbon-related trade barriers are systematically raising export costs. In this context, the domestic market's strategic value is heightened.
The State Council's '15th Five-Year Plan for Expanding Consumption', issued in July, is gradually taking effect, but the structural imbalance between supply and demand in China will not be resolved quickly. Sectors such as home textiles, sportswear, and industrial textiles offer ample potential. Companies that shift some export capacity to high-end domestic demand can relieve export pressure and enhance product value.