According to statistics from China Customs, China’s cumulative apparel exports (including accessories, hereinafter the same) totaled US$137.81 billion in the first eleven months of 2025, down 4.4% year-on-year. Since the second half of 2025, China’s apparel exports have shown continuous year-on-year declines: in the third quarter of 2025, total exports fell by 6.2% year-on-year; the decline widened to 15.9% in October; while in November, the drop moderated slightly to 10.9% year-on-year.

I. Export Performance

(A) Export prices continue to decline at an accelerating pace

From January to November 2025:

- Woven apparel exports amounted to US$55.87 billion, down 4.9% year-on-year; export volume reached 13.18 billion pieces, up 4.3%; average unit export price declined by 8.8%.

- Knitwear exports totaled US$63.74 billion, down 3.9% year-on-year; export volume was 22.33 billion pieces, up 4.4%; average unit price fell by 8.0%.

- Accessories exports stood at US$13.83 billion, down 3.6% year-on-year.
In November alone, the decline in export prices further deepened. Unit price for woven apparel dropped by 18.1% year-on-year, and that of knitwear fell by 12.3% year-on-year.

(B) Underwear experiences the steepest declines

From January to November 2025, only two categories saw slight growth: sweaters (+0.6%) and trousers (+0.5%). All other major apparel categories declined, with underwear experiencing the largest drops. Among them, exports of brassieres fell 11.9%, exports of underwear/sleepwear decreased by 10.0%, dresses declined by 10.1%, and knitted T-shirts dropped 9.3%.

II. Regional Export Trends

(A) Exports to the E.U. rise, while those to the U.S. and ASEAN continue to fall

In the first eleven months of 2025, China’s apparel exports to the United States totaled US$29.15 billion, down 11.4% year-on-year, accounting for 21.2% of total apparel exports. Exports to non-U.S. markets reached US$108.66 billion, down 2.4%. Those to the European Union reached US$26.25 billion, up 4.3%, representing 19.1% of the total. Exports to Japan were US$10.87 billion, up 0.7% (7.9% share). Exports to South Korea were US$5.64 billion, down 6.4%. Exports to the United Kingdom reached US$4.98 billion, up 4.3%. Those to Australia were US$4.2 billion, down 2.4%. and the exports to Canada were US$2.54 billion, up 1.9%.

From January to November, China’s apparel exports to Belt and Road Initiative countries totaled US$58.77 billion, down 5.2% year-on-year. Exports to ASEAN totaled US$10.83 billion, down 19.8%. Exports to Latin America amounted to US$9.15 billion, up 5.3%. Exports to Africa reached US$7.51 billion, up 15.2%. Those of the five Central Asian countries totaled US$9.22 billion, down 20.2%. Exports to Russia reached US$3.43 billion, down 0.5%. Exports to the six GCC countries amounted to US$4.03 billion, down 1.2%. In November alone, exports to the United States plunged 23% year-on-year, exports to the European Union fell 1%, exports to Japan rose 7.2%, and exports to ASEAN dropped sharply by 27%.

(B) Zhejiang and Shandong defy trend with export growth

From January to November, Zhejiang Province and Shandong Province bucked the trend with growth in apparel exports. Zhejiang exported US$35.07 billion worth of apparel, up 4% year-on-year, accounting for 25.4% of China’s total apparel exports. Shandong Province exported US$16.67 billion worth of apparel, marking a 1.7% increase. Guangdong’s apparel exports fell 12.1% to US$18.21 billion. Jiangsu’s apparel exports totaled US$17.91 billion, down 5.3%. Xinjiang Uygur Autonomous Region’s apparel exports reached US$10.97 billion, down 11.3%; Fujian’s apparel exports amounted to US$10.46 billion, down 14.1%. Among other regions, Sichuan Province and Hunan Province saw a plunge of 46.5% and 30.1%, respectively; Heilongjiang and Chongqing demonstrated notable growth, both exceeding 60%.

(C) China’s market share in the U.S. declines while that in Europe grows

In the first three quarters, Vietnam accounted for 19.7% of the United States apparel imports, solidifying its position as the top supplier, with its lead widening month by month. China’s share of the United States apparel imports stood at 15.5%, down 7.3 percentage points year over year.

From January to October, China’s share of the European Union’s apparel imports reached 29.7%, up 0.9 percentage points year-on-year. Bangladesh ranked second with a 21.1% share, up 0.9 percentage points year-on-year.

From January to November, China’s share of Japan’s apparel imports stood at 46.9%, down 1.8 percentage points; Vietnam ranked second with an 18.7% share, up 0.9 percentage points year-on-year.

III. Outlook and Key Trends

(A) Weak expected global trade growth

In its October 2025 forecast, the IMF projected global GDP growth of 3.2% in 2025 and 3.1% in 2026. The WTO forecast global merchandise trade growth of 2.4% in 2025, slowing sharply to just 0.5% in 2026. While short-term factors such as inventory restocking and tariff-avoidance behavior provided temporary support in 2025, U.S. tariff policy and its associated uncertainty remain the largest downside risk to global trade in 2026, with such restrictive measures now spreading to more economies and sectors.

(B) RMB/US$ exchange rate hits multi-year high

In 2025, the renminbi (RMB) followed a “weak-then-strong” trajectory against the US dollar. From early January to early April, it traded weakly in a narrow band between 7.30 and 7.35. In April, however, the currency reversed course, shifting from depreciation to sustained appreciation. By year-end, both the onshore (CNY) and offshore (CNH) RMB had broken through the psychologically significant 7.00 level—reaching their strongest levels since September 2024 and May 2023, respectively. Looking ahead to 2026, the RMB is expected to maintain its strength against the dollar. For garment exporters, this trend may reduce foreign exchange earnings and compress profit margins. To mitigate currency risk, companies can employ forward contracts or increasingly adopt RMB-denominated invoicing and settlement.

(C) Global tariff and E-Commerce regulations tighten significantly

On December 29, 2025, Mexico published in its Official Gazette a detailed list of additional tariffs targeting imports from countries with which it has no Free Trade Agreement (FTA). Textile and apparel products from China are subject to duties ranging from 20% to 35%, effective January 1, 2026. Simultaneously, Mexico’s new e-commerce platform pre-withholding tax mechanism takes effect on the same date, significantly diminishing the price competitiveness of low-cost Chinese goods sold via cross-border platforms.

Thailand also eliminates its de minimis exemption, previously allowing duty-free entry for shipments valued at or below THB 1,500 (approximately RMB 335), as of January 1, 2026. Under the new regime, all imported goods, regardless of value (even as low as 1 THB), will be liable for import duties and value-added tax (VAT). The measure particularly impacts foreign sellers on e-commerce platforms such as Shopee, Lazada, and AliExpress.

This trend is part of a broader global shift: the United States, European Union, Japan, and Vietnam have all moved to abolish or lower de minimis thresholds and strengthen customs oversight of low-value consignments, signaling the end of the “duty-free era” for cross-border e-commerce.

IV. Conclusion

China’s apparel exports in 2025 demonstrated notable resilience amid mounting external pressures. Provinces such as Zhejiang and Shandong posted gains despite the broader industry headwinds, while shipments to the European Union and Africa continued to rise, highlighting the underlying strength and adaptability of China’s apparel supply chain.

Nevertheless, the sector confronts three pressing challenges.

Firstly, fragmented global demand and heightened uncertainty, with exports to the U.S. and ASEAN registering sustained declines. Tariff tensions initiated by the U.S. are now extending into 2026, amplifying systemic trade risks.

Secondly, intensified price-based competition, which is compressing profit margins and necessitating a strategic pivot toward innovation-led differentiation.

Thirdly, mounting cost pressures, exacerbated by RMB appreciation beyond the 7.00 psychological threshold, further diminish CNY-denominated export revenues.

This era of industry divergence is also a period of strategic realignment. Only those enterprises that proactively embrace technological advancement, elevate design capabilities, and implement precision-driven operational management will successfully navigate the cycle and emerge positioned to lead in the next phase of global competition.

Source: CHINA TEXTILE LEADER Express