China Strengthens Lead in Textile Value Addition

China has reinforced its global leadership in textile value addition, with yarns and fabrics accounting for nearly half of its total textile and apparel exports in the first seven months of 2025, underlining its dominance in the mid- and downstream textile value chain.

According to data from the General Administration of Customs, China’s textile and apparel exports from January to July 2025 reached US$170.74 billion, marking a 0.6% year-on-year increase — the highest level for the same period in recent years. Textile exports rose 1.6% to US$82.12 billion, while apparel exports slipped 0.3% to US$88.62 billion. In yuan terms, total exports amounted to 1.23 trillion yuan, up 1.8% year-on-year, with textile exports rising 2.7% to 590.07 billion yuan and apparel exports up 0.9% to 636.79 billion yuan.

Fibre exports remained below 5%, emphasizing China’s focus on high-value manufacturing and stronghold in yarn and fabric production — the key value-addition stages in the textile supply chain. This structure allows China to retain more profit margins domestically while exporting finished intermediates and garments globally.

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Despite global uncertainties, Chinese textile exporters have managed to maintain resilience and steady performance. In July alone, total textile and apparel exports reached US$26.77 billion, down just 0.1% year-on-year. Textile exports increased 0.6% to US$11.6 billion, while apparel exports edged down 0.5% to US$15.16 billion.

According to China Customs, the export of textile intermediates has become a major growth driver this year. In the first half of 2025, exports of textile intermediates hit US$42.73 billion, growing 2.7% year-on-year. Downstream textile products, such as finished fabrics, also showed stability with exports worth US$28.53 billion, up 0.2%. However, apparel and accessories exports faced slight pressure from weakening global demand and U.S. tariff measures, totaling US$73.46 billion, down 0.2% year-on-year.

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China’s textile and apparel were exported to more than 150 countries and regions during the first half of the year, helping stabilize the global textile supply chain amid rising geopolitical and economic challenges. The industry continues to leverage its integrated supply base, advanced production technologies, and diversification of trade partners to mitigate risks.

Analysts note that China’s growing emphasis on value-added exports underscores a strategic shift from volume to quality and innovation. By deepening its industrial chain capabilities and global partnerships, China is expected to remain the “value-addition king” in global textiles for the foreseeable future — even as competition and policy pressures from major markets persist.