When the industry is still accustomed to measuring itself by output and export volume, a discussion about the 'fundamental value' is reshaping the coordinate system of the textile sector. On August 24, the 9th Executive Council Meeting of the 5th Session of the China National Textile and Apparel Council (CNTAC) was held in Shanghai. The core signal of the meeting was not a specific data point, but a systematic reassessment of the industry's positioning during the 15th Five-Year Plan period—shifting from 'scale priority' to 'ecosystem restructuring.' This may be a more noteworthy change than any growth rate.
Background
The meeting coincided with the first year of the 15th Five-Year Plan. CNTAC President Sun Ruizhe explicitly defined the industry as 'a pillar industry of the national economy, a livelihood industry for common prosperity, an advantageous industry for internal and external integration, and a classic industry for inheritance and innovation.' This definition is not a slogan but a re-anchoring of the industry's function and value. The meeting reviewed routine matters such as the 2025 financial report and council member adjustments, but the more significant focus was the interpretation of three policy documents: the Domestic Trade Transaction Guidelines, the Action Plan for Standards Leading the Textile Industry Optimization and Upgrading (2026-2028), and the Action Plan for Cultivating Excellent Brands in Textile and Apparel (2026-2028).
The Domestic Trade Transaction Guidelines were jointly issued by CNTAC and 16 national industry associations, under the guidance of the Ministry of Commerce, comprising seven chapters and 38 articles, covering the entire chain of commercial transactions. The background is the construction of a unified national market—meaning that domestic trade rules in the textile industry will become more standardized, and profit models that relied on regional price differences or information asymmetry may become obsolete. The two action plans, led by the Ministry of Industry and Information Technology, focus on standard upgrades and brand cultivation, directly targeting the enhancement of industrial foundational capabilities.
Industry Impact
For buyers and factories, the implementation of these policies means the rules of the game are changing. First, the transaction guidelines will promote standardization in contract terms, payment cycle transparency, and quality acceptance, squeezing the space for informal practices like 'verbal agreements' or 'goods before payment.' For small and medium suppliers, this is both a challenge—requiring adaptation to more standardized processes—and an opportunity, as creditworthy enterprises will find it easier to secure orders.
Second, the standards-led action plan will accelerate the elimination of outdated production capacity. The 2026-2028 period is a critical window; technical standards for fabrics, yarns, dyeing, and finishing will be progressively raised. Factories that still rely on low-end imitation or cost-based competition may face order losses, while those that invest early in functional fabrics and green dyeing processes stand to gain policy dividends and market premiums.
The brand cultivation plan directly targets the high end of the value chain. For a long time, China's textile industry has been known for OEM and intermediate goods exports, with weak bargaining power for end brands. This plan emphasizes 'excellent brands,' signaling that the transition from 'selling products' to 'selling brands' will become a policy priority. For foreign trade enterprises, this is a signal: pure price advantage is unsustainable, and building independent brands or participating in domestic brand supply chains will become a new direction.
Sun Ruizhe's report mentioned 'adapting to changes in the international situation, market environment, regional pattern, and intelligent economy.' These four 'changes' outline the external pressures facing the industry. Internationally, geopolitical tensions and trade barriers may further fragment global supply chains; domestically, consumption upgrades and downgrades coexist, making quality and service the competitive focus; regionally, the transfer of industries to central and western regions coexists with eastern high-end development, making differentiated positioning crucial; in terms of intelligence, AI and automation are reshaping production models, and companies that do not embrace digitalization risk being left behind.
Practical Recommendations
For Buyers - When re-evaluating suppliers, consider compliance with the Domestic Trade Transaction Guidelines as a prerequisite, prioritizing enterprises with standardized processes and transparent contracts to reduce performance risks. - Monitor standard updates, especially changes in environmental, safety, and functional indicators, to avoid purchasing low-standard products that may be phased out and affect end sales. - Leverage brand cultivation policies to establish deep cooperation with factories that have design capabilities and brand potential, developing differentiated products rather than merely comparing prices.
For Foreign Trade Enterprises - While consolidating overseas markets, explore domestic sales channels, but be aware of differences between domestic and foreign trade rules, familiarizing yourself with the terms of the Domestic Trade Transaction Guidelines to avoid compliance risks. - Treat standardization and certification as core competitiveness, actively participate in setting industry standards or benchmarking against international advanced standards to enhance product acceptance in high-end markets. - Pay attention to the trend of industrial transfer to central and western regions, consider relocating some production capacity to cost-advantageous areas while retaining eastern R&D and design centers to form a synergistic 'front store, back factory' model.
As the 15th Five-Year Plan begins, the textile industry is no longer merely pursuing 'growth' but aiming to 'excel' amid complex changes. The pragmatic signal from the meeting is that future competition will revolve around rules, standards, and brands. Enterprises need to adjust their course early, turning external pressure into internal driving force.