China's textile and apparel exports grew 7.6% year-on-year in July 2026, hitting a yearly high in monthly growth, but the breakdown reveals a sharp divergence between garments and fabrics. Customs data show garment exports reached $16.45 billion, up 8.5%, while textile exports totaled $12.35 billion, up only 6.4% and down 8.7% month-on-month. This indicates overseas buyers are prioritizing finished garments over upstream materials.
Data Signals
Cumulative exports from January to July reached $174.75 billion, up 2.4% year-on-year, with textiles at $85.34 billion (up 3.9%) and garments at $89.4 billion (up 0.9%). In RMB terms, total exports were 1,208.43 billion yuan, down 1.5%, with garments down 2.9% and textiles up 0.1%. These figures suggest that while upstream supply chains are more stable in the long run, short-term order momentum is clearly tilted toward finished goods.
In July alone, exports were 196.26 billion yuan, up 2.3% year-on-year but down 1.1% month-on-month. Textiles fell 8.2% month-on-month, while garments rose 5.1%. This pattern reflects the post-de-stocking restocking wave: retailers first refill shelves with apparel, then gradually place orders for fabrics and yarns. For domestic weaving and dyeing mills, this means limited order growth in the near term and slower profit recovery compared to garment factories.
Regional Divergence and Over-Reliance
In the first half of the year, exports to the US grew 12.5%, making it the only core market with high growth. Exports to the EU were flat, while demand from ASEAN, Japan, and South Korea weakened. The US market's strength stems from low retail inventories and China's fast-response production advantages. However, this creates a structural risk: if US consumption falters, overall export growth will lose its main support.
With limited EU growth, declining neighboring markets, and no stable emerging markets yet, the industry is heavily dependent on a single region. Overseas buyers are increasingly conservative, favoring small batches, short lead times, and split shipments over large long-term orders. This makes capacity planning more difficult and increases operational volatility.
Supply Chain Mismatch and Outlook
The current mismatch between upstream and downstream segments is the industry's most prominent challenge. Overseas clients are consuming existing fabric inventories, delaying new orders for yarns and greige fabrics. However, as autumn/winter garment production ramps up, a second wave of fabric restocking is expected around September. Upstream companies should stay rational about weak short-term orders and proactively seek supporting orders from domestic garment exporters.
Garment manufacturers should seize the autumn/winter delivery window, deepen relationships with US buyers, and focus on high-value-added products such as outdoor thermal wear and functional apparel. Optimizing production schedules and shortening lead times will help meet the fast-replenishment demand of global brands, securing Q4 repeat orders.