In the first four months of 2026, China's textile and apparel exports presented a mixed picture. Customs data shows that exports of textile yarn, fabrics, and articles reached $46.896 billion, up 2.3% year-on-year, while apparel and clothing accessories exports totaled $44.231 billion, down 0.9%. The combined export value was $91.127 billion, dragged down by the apparel segment.
In April alone, yarn and fabric exports were $12.705 billion, and apparel exports were $11.348 billion, totaling $24.053 billion. Apparel exports have now been lower than fabric exports for two consecutive months, a rare occurrence in the past five years.
Resilience Behind Fabric
The slight growth in yarn and fabric exports is not due to broad volume expansion but structural support. On one hand, expanding textile processing capacity in Southeast Asia and South Asia creates rigid demand for Chinese fabrics and greige goods. On the other hand, Chinese fabric producers maintain process and cost advantages in polyester, nylon, and functional textiles, making them hard to replace in the short term.
Feedback from industrial clusters like Shengze and Keqiao indicates stable orders in March and April, with delivery times extending for differentiated products like recycled polyester and antibacterial fabrics. This suggests that fabric export resilience stems more from product upgrades and customer loyalty than pure price competition.
Notably, fabric imports surged 19.1% to $3.774 billion, far outpacing export growth. This indicates active restocking by domestic downstream processors, especially for high-end yarns and fine fabrics. It reflects robust domestic demand but also suggests rising raw material cost pressure for some exporters.
Apparel Under Pressure: Order Outflow and Weak Consumption
The 0.9% decline in apparel exports, though modest, is a worrying trend. The base in 2025 was not high ($44.611 billion), yet 2026 failed to grow, signaling weakening external demand.
Feedback from trading companies points to three main pressures: first, continued order migration from Western brands to Vietnam and Bangladesh, especially for basic T-shirts and jeans; second, high global retail inventories slowing brand ordering; third, RMB exchange rate volatility adding uncertainty to short-term orders.
By category, knitted apparel declined more than woven apparel. This aligns with the global casual wear trend—knitted products are easier for low-cost countries to replicate, while woven items (shirts, suits) retain some technical barriers.
Import Surge: Domestic Restocking or Substitution?
Textile raw material and product imports grew 19.1% in the first four months, an increase of about $600 million. This growth rate is rare in recent years.
Structurally, growth is concentrated in chemical fiber yarns and specialty fabrics. Some weaving mills report that high-end orders require superior raw material quality, which domestic sources sometimes fail to meet in terms of uniformity and color fastness. Additionally, cotton price volatility has driven mills to increase chemical fiber imports as a hedge.
However, rapid import growth may also squeeze domestic raw material market share. If this trend continues, China's chemical fiber and spinning sectors will face intensified competition.