Author name: Benjamin TAO

Since the beginning of 2025, China’s apparel industry has faced severe economic pressures amid complex and volatile external conditions. Key indicators such as production, exports, and profitability have fallen sharply, investment growth has slowed, while domestic sales have maintained moderate growth. Looking ahead, the ongoing implementation of national policies to boost consumption will continue to produce results. Year-end shopping occasions, such as Christmas and New Year’s Day, will boost demand, creating opportunities and laying the groundwork for the industry’s economic recovery. However, overall momentum for consumption improvement remains weak both domestically and internationally. Various unstable factors, including geopolitical conflicts and trade frictions, still exist, and the industry continues to face significant challenges in achieving high-quality development. I. Economic Performance of the Apparel Industry in the First Three Quarters (A) Output During the first three quarters, China’s apparel industry experienced a decline in production, with the industrial added value of enterprises above the designated size also declining. The slowdown in apparel exports during the third quarter mainly affected the industry, causing apparel output to shift from slight growth in the first half to a slight decline. According to data from the National Bureau of Statistics, from January to September, the industrial added value of enterprises above the designated size in the apparel sector fell by 2.4% year-on-year, with the growth rate decreasing by 2.8 percentage points compared to the same period in 2024. Output from these enterprises dropped by 1.47%, with the growth rate slowing by 1.07 percentage points from the first half and decreasing by 5.88 percentage points compared to the same period in 2024. In product categories, woven apparel production declined more sharply than knitted apparel. Data show that from January to September, enterprises above the designated size’s woven apparel output fell 4.24% year-on-year. Within this category, down apparel production increased by 6.21%, while suit and shirt production declined by 16.18% and 4.87%, respectively. Knitwear production decreased slightly by 0.2%. Meanwhile, driven by increased demand for sportswear, outdoor apparel, and functional casual wear, the share of knitwear in total garment production continued to grow, reaching 69.39%—an increase of 0.57 percentage points compared to the same period in 2024. Figure 1: The Growth Rate of China’s Apparel Industry Production in Jan.-Sept., 2025 Source: National Bureau of Statistics (B) Domestic sales Since the start of this year, supported by positive factors like the effectiveness of national policies to boost consumption and the gradual recovery of consumer confidence, the domestic apparel market has experienced moderate growth, with online retail channels showing an improving trend. According to data from the National Bureau of Statistics, from January to September, the total retail sales of apparel goods by enterprises above designated size reached 759.02 billion yuan, a 2.4% increase year-on-year. This growth rate was 2.6 percentage points higher than the same period in 2024. Business models such as live-streaming sales and social e-commerce continued to boost consumption, with online retail sales of apparel products rising by 2.8% year-on-year—an increase of 1.4 percentage points compared to the first half of this year. (C) Exports In the first three quarters, China’s apparel exports continued to decline due to weak international demand and changes in U.S. tariff policies. According to China Customs data, during this period, China’s total export value of garments and clothing accessories reached US$115.21 billion, a 2.5% decrease compared to the previous year. In terms of volume and price, garment exports kept increasing in volume but saw falling prices. Export volume reached 26.75 billion pieces, up 5.9% year-on-year, while the average export price dropped 7.5% to US$3.6 per piece. Monthly data show clothing exports grew in the first half of the year but entered a period of sustained negative growth in the third quarter. July exports declined 0.3% year-on-year, with August and September seeing decreases of 10.0% and 8.0%, respectively. The growth rate of export volume also slowed from 8.7% in the first half to 1.3% in the third quarter. Figure 2: The Performance of China’s Apparel and Accessories Exports in Jan.-Sept., 2025 Source: China Customs By export category, knitwear exports totaled US$51.64 billion, down 2.3% year-on-year, with export volume increasing by 5.5% and export unit price decreasing by 7.4%. Woven apparel exports reached US$43.57 billion, down 1.8% year-on-year, with export volume rising 6.9% and export unit price falling 8.2%. Within subcategories, exports of higher value-added commuter and social wear showed steady growth. Specifically, exports of casual suits, pants, and sweaters increased by 17.5%, 3.1%, and 3.0%, respectively, year-on-year. Exports of tops and T-shirts experienced volume growth but price declines, with export unit prices falling 16.3% and 12.0% year-on-year, respectively. Down jackets saw a decrease in volume but an increase in prices, with export unit prices rising 10.4% year-on-year. Looking at major markets, apparel exports demonstrated a clear pattern of diversification. China’s apparel exports to the United States fell sharply, while exports to the EU, Japan, the UK, and other markets continued to grow rapidly, effectively compensating for the loss of market share in the US. During this period, fluctuating U.S. tariff policies hampered efforts to adapt corporate export strategies. China’s exports to ASEAN and Belt and Road countries and regions further declined. Meanwhile, apparel companies actively promoted market structure optimization and diversification, leading to strong growth in exports to Latin America, Africa, Chile, Canada, and other trading partners.From the exporting province’s perspective, the eastern regions remained the main center for China’s apparel exports, with Zhejiang Province and Shandong Province showing continued growth. In contrast, provinces in the central and western areas displayed significant variation in export performance. Hubei and Guangxi experienced notable growth, while Sichuan and Hunan faced double-digit declines. According to China Customs data, from January to September, the eastern region’s apparel exports totaled US$93.49 billion, declining by 1.9% year-on-year, making up 81.2% of the country’s total apparel exports. Among the top five apparel exporting provinces, Zhejiang and Shandong saw year-on-year increases of 4.8% and 4.1%, respectively; Guangdong, Jiangsu, and Xinjiang experienced decreases of 10.3%, 2.7%, and 7.2%, respectively. During the same