my country’s textile industry maintained a generally stable economic performance in the first quarter of 2026

This year, the external environment facing my country’s textile industry has become increasingly complex and severe due to multiple factors, including escalating geopolitical conflicts, rising protectionism, and fluctuating energy prices. However, supported by my country’s massive domestic market, the textile industry has fully leveraged the efficient operation of its complete industrial system, overcoming difficulties head-on, actively exploring domestic and international markets, and optimizing production and sales rhythms. The negative impact of international factors on the industry’s stable operation has been effectively controlled. In the first quarter, major operating indicators such as production, domestic sales, exports, and investment all achieved positive growth, achieving a generally stable start. Looking ahead, the textile industry still needs to actively address risks and challenges such as persistently weak external demand, fluctuating raw material prices, and intensified market competition, striving to achieve stable and orderly economic operation.

Production Growth Slows Down Steadily

After the Spring Festival this year, the resumption of work and production by textile enterprises was generally good. However, since March, affected by the escalation of the US-Israel-Iran tensions and the resulting high fluctuations in textile raw material prices, the capacity utilization level of enterprises has experienced a temporary decline, leading to a slight slowdown in the industry’s production growth rate in the first quarter. Data from the National Bureau of Statistics shows that in the first quarter, the capacity utilization rates of the textile and chemical fiber industries above designated size were 76.5% and 84.7% respectively, down 1.3 and 1.6 percentage points from the same period last year, but still better than the national average of 73.6%. In the first quarter, the industrial added value of textile enterprises above designated size increased by 3.9% year-on-year, a decrease of 1.4 percentage points from the same period last year. The industrial added value of the entire industrial chain achieved positive growth, with sub-sectors such as wool textiles, hemp textiles, and silk maintaining a good double-digit growth momentum. Among the 15 major textile product categories tracked by the National Bureau of Statistics, the output of 10 major categories, including chemical fibers, fabrics, printed and dyed fabrics, non-woven fabrics, and clothing, achieved steady growth.

Domestic Sales Achieve Strong Growth

In the first quarter of this year, my country’s macroeconomy got off to a good start. The country implemented a special action to boost consumption, residents’ expectations for employment and income improved, and holiday consumption remained active, supporting the strong growth of domestic sales of textiles and apparel. According to data from the National Bureau of Statistics, in the first quarter, per capita clothing consumption expenditure of residents nationwide increased by 5.6% year-on-year, 4.4 percentage points higher than the same period last year. During the same period, the retail sales of clothing, footwear, and textiles by enterprises above the designated size in my country increased by 9.3% year-on-year, an increase of 5.9 percentage points compared to the same period last year. New business formats and models are flourishing, high-quality supply is becoming increasingly abundant, and the multi-level logistics system is continuously improving, leading to rapid growth in online retail channels. In the first quarter, the national online retail sales of clothing increased by 11.6% year-on-year, an increase of 11.7 percentage points compared to the same period last year.

Export Situation Under Pressure and Slowing Growth

Since the beginning of this year, the escalating conflict between the US, Israel, and Iran has pushed up global production and logistics costs, disrupted international supply chains, and suppressed consumer recovery, leaving the textile industry facing a relatively severe export situation. Foreign trade enterprises have actively responded, accelerating market diversification, promoting the expansion of new business formats such as cross-border e-commerce, and focusing on stabilizing orders and expanding markets. Despite the high base from “rush exports” to the US in the same period last year, exports still achieved growth in the first quarter, reaching a relatively high level for the same period in four years. Data from Chinese customs shows that in the first quarter of this year, my country’s total exports of textiles and apparel (including products under Chapter 94) reached US$71.3 billion, an increase of 1.4% year-on-year, 0.7 percentage points higher than the same period last year. Textile exports maintained relatively stable competitiveness, reaching US$36.29 billion, a year-on-year increase of 2.6%. Amid relatively eased Sino-US trade relations, garment exports faced some pressure, reaching US$35.01 billion, a slight year-on-year increase of 0.2%. Export performance to major markets continued to diverge, with textile and garment exports to the US, Japan, and ASEAN declining year-on-year, but exports to Russia, Australia, Germany, India, and Brazil achieving double-digit or higher growth rates.

Slow Improvement in Enterprise Profits

In the first quarter of this year, the profitability of textile enterprises remained generally stable, but due to persistently weak demand and rising raw material costs, the pressure for improvement remained significant. Data from the National Bureau of Statistics showed that in the first quarter, the operating revenue of 37,000 large-scale textile enterprises nationwide decreased slightly by 0.4% year-on-year, a drop of 1.4 percentage points compared to the same period last year; total profits and operating revenue profit margins were roughly the same as the same period last year. Among the major links in the industrial chain, the profitability of sub-sectors such as hemp textiles, silk, filament weaving, and textile machinery was better than the same period last year. However, the total profits of downstream sub-sectors such as dyeing and printing, knitting, apparel, home textiles, and industrial textiles decreased to varying degrees compared to the same period last year.

Investment Growth Slows Down from High Level

In the first quarter of this year, textile enterprises focused on key areas and weak links to continue promoting high-end, intelligent, and green technological transformation and upgrading. However, affected by profit pressure and a high base in the same period last year, the investment growth rate of some sub-sectors in the industrial chain declined. Data from the National Bureau of Statistics shows that in the first quarter, the completed fixed asset investment in my country’s textile industry (excluding rural households) increased by 17.6% year-on-year, an increase of 4.1 percentage points compared to the same period last year; investment in the chemical fiber industry and the apparel industry decreased by 4.1% and 11.8% year-on-year, respectively, ending the positive growth trend of the past two years.

Adapting to Pressure and Deepening Transformation

2026 is the first year of the “15th Five-Year Plan”. Looking ahead to the whole year, the development environment facing the textile industry remains complex and severe overall. The ongoing international geopolitical conflicts will gradually permeate the entire global textile supply chain, impacting production, distribution, and consumption. This will challenge the adaptability of textile enterprises, putting continued pressure on exports and profits in the short term. However, my country’s macroeconomic policies are simultaneously promoting both consumption and people’s livelihoods, with the in-depth implementation of special actions to boost consumption. This will accelerate the release of diverse demand potential from sectors such as traditional Chinese style, outdoor sports, health and elderly care, the experience economy, and smart products, playing a core role in supporting the stable development of the textile industry. Relevant government departments are implementing the “15th Five-Year Plan” for high-quality development, taking multiple measures to address “involutionary” competition, and the gradual release of policy dividends such as digital special green credit will open an important window of opportunity for textile enterprises to deepen transformation and upgrading and activate new productivity. The textile industry will thoroughly implement the spirit of the Central Economic Work Conference, based on the new development requirements of “technology, fashion, green, and health” during the “15th Five-Year Plan” period, persist in deepening transformation and upgrading, solidly promote the construction of a modern industrial system, strive to prevent and resolve external risks, ensure stable and positive economic operation throughout the year, and achieve a good start to the “15th Five-Year Plan.”

(Source: China Textile Federation Industrial Economic Research)