On August 24, the fifth standing committee meeting of the China National Textile and Apparel Council (CNTAC) was held in Shanghai, sending a clear signal: at the start of the 15th Five-Year Plan period, the industry is no longer simply pursuing scale growth, but aims to complete a systemic value restructuring amid changes. The Domestic Trade Transaction Guidelines and two action plans released at the meeting outline specific paths for industrial upgrading over the next three years.
Background
The Domestic Trade Transaction Guidelines, guided by the Ministry of Commerce and jointly formulated by CNTAC and 16 national industry associations, consist of seven chapters and 38 articles, covering the entire commercial transaction chain. This marks a key step toward standardization and normalization in the domestic trade rules of the textile industry, exerting far-reaching constraints and guidance on the domestic market that has long relied on 'relationship-based' and gray-area operations.
The concurrently interpreted Action Plan for Standard-Led Optimization and Upgrading of the Textile Industry (2026-2028) and the Action Plan for Cultivating Excellent Brands in Textile and Apparel (2026-2028), led by the Ministry of Industry and Information Technology, focus on standards and brands. Standards embody technological discourse power, while brands are carriers of value chain upgrading. Both plans directly target the industry's pain point of being 'large but not strong.'
Industrial Impact
The work report summarized the first half of the year as 'steady progress,' but more noteworthy is the repositioning of the industry for the 15th Five-Year Plan period: a pillar industry, a people's livelihood industry, an advantageous industry, and a classic industry. This quadruple positioning means that the textile industry's role in national strategy is no longer merely a tool for earning foreign exchange, but a composite function that combines economic stability, employment security, international competitiveness, and cultural heritage.
President Sun Ruizhe's 'four adaptations' set the tone for transformation: adapt to changes in the international situation, coordinate development and security; adapt to market changes, improve quality and service; adapt to regional pattern changes, ensure differentiation and complementarity; adapt to the intelligent economy, restructure models and ecosystems. This essentially requires enterprises to adjust simultaneously in supply chain layout, product structure, digital investment, and regional collaboration, rather than pursuing breakthroughs in a single area.
For buyers, the implementation of the domestic trade guidelines means clearer industry consensus on contract performance, quality acceptance, and payment cycles. Gray profit margins from information asymmetry will be compressed, forcing procurement to become transparent and long-term. For factories, the standard action plan will accelerate the elimination of outdated capacity; small and medium enterprises that fail to meet environmental, energy, and quality standards will face severe compliance pressure in the next three years.
The meeting also emphasized 'returning to the fundamental value,' proposing three dimensions: 'truth, goodness, and beauty'—hardcore innovation, responsible development, and cultural innovation. This is not a slogan but a redefinition of the industry's growth logic. Simply relying on low prices and scale is no longer sustainable; differentiation through technological innovation and brand premium through ESG responsibility will become new competitive barriers.