China’s textile and apparel manufacturers are aggressively redirecting focus toward emerging markets, with shipments to ASEAN and Belt and Road Initiative (BRI) partner countries now representing a larger share of the export portfolio.

This is in response to the 2.4 per cent Y-o-Y decline in total T&A exports to $293.77 billion during 2025. This downturn was primarily driven by a significant 5.0 per cent contraction in finished garment exports, which totaled $151.12 billion. Analysts attribute this decline to sustained inventory corrections in the United States and Europe, coupled with escalating tariff pressures that pushed US apparel imports from China to their lowest levels in over two decades. In response,

Resilience in upstream industrial feedstocks

In contrast to the garment segment, upstream textile products - including yarns and fabrics—demonstrated resilience, posting a modest 0.5 per cent growth to reach $142.6 billion in 2025. This relative stability highlights China's entrenched position as a critical provider of intermediate components for global supply chains. As apparel assembly increasingly relocates to lower-cost hubs like Vietnam and Bangladesh, China is transitioning into a high-tech supplier of functional fabrics and specialized machinery. This structural shift is supported by substantial investments in "circular" cellulose and waterless dyeing technologies, aimed at maintaining a competitive edge through technical innovation rather than labor-intensive volume.

China remains the world's largest textile producer, contributing over 20 per cent of global revenue. The sector is currently transitioning from mass-market apparel assembly to high-margin technical textiles and automated machinery. With a projected CAGR of 5.6% through 2033, growth plans emphasize vertical integration and sustainable fiber innovation to mitigate geopolitical trade risks.