On May 28, Dong Kuiyong, President of the China Cotton Textile Association, delivered a keynote speech entitled “Economic Performance and Outlook of China’s Cotton Textile Industry” at the 2026 China Cotton Industry Development Summit Forum, analyzing the current operational status, challenges, and future development direction of the cotton textile industry.

Dong Kuiyong stated that China’s cotton textile industry has entered a pivotal transition period marked by widening performance gaps among enterprises. Significant differences in enterprise performance are evident across the upstream and downstream segments, among different product varieties, and across different regions. The industry faces issues such as rising raw material prices, poor price pass-through, narrowing profit margins, and insufficient order follow-up. Overall operating pressure remains substantial, profitability remains weak, and the proportion of loss-making enterprises remains relatively high.

In terms of foreign trade, textile and apparel exports remain under pressure amid fierce international competition. China’s cotton products have seen their market share decline in some overseas markets, and the trend of substitution by non-cotton products persists. Domestic cotton textile enterprises incur higher cotton usage costs than in some competing countries, with a notable disadvantage in raw material costs. Changes in cotton price differentials have also affected the structure of raw material usage.

He pointed out that cotton, as the core raw material, is closely tied to the development of the cotton textile industry. Rising cotton prices continue to push up production costs. Competition in the conventional cotton yarn market remains intense, while differentiated products have performed relatively better. Looking ahead, the industry’s operational outlook remains uncertain.

Regarding future development, Dong Kuiyong proposed that the cotton textile industry must consolidate its industrial foundation, optimize its industrial structure, and cultivate world-class leading enterprises. It should leverage new quality productive forces (innovation-driven productive capacity), strengthen technological innovation, and establish the industry as a source of technological advancement. The industry should drive upgrading across the entire value chain, enhancing product quality and brand influence. It must also pursue dual carbon goals, reinforce social responsibility, and invest in talent development. Furthermore, the industry should break away from involutionary competition and guide enterprises to focus on technological, product, and management innovation.

He emphasized that the industry should expand the supply of high-quality products and consolidate its position in the global division of labor. Building on the advantages of a complete industrial chain and supply chain, the industry should confront difficulties head-on, uphold integrity while pursuing innovation, accelerate the construction of a modern industrial system, and drive the cotton textile industry toward high-quality development.

Source: CHINA TEXTILE LEADER Express