CCFGroup: Emerging markets drive China's T&A export growth in Jan-Feb

CCFGroup: Emerging markets drive China's T&A export growth in Jan-Feb

Emerging markets are driving growth: Russia, India, Brazil, Malaysia, the UAE, and Saudi Arabia all saw export shares rise by 0.2-0.4 percentage points, indicating that market diversification is underway, with new markets becoming the main growth driver.

Recent data shows that from January to February 2026, China's textile and apparel exports totaled USD 50.4 billion, up 17.6% year-on-year. Within this total, textiles rose 20.5%, and apparel and clothing accessories grew 14.8%, indicating strong performance in the first two months of 2026.

The EU remains a major destination, while the U.S. accounts for 15.4% of China's textile and apparel exports, down 1 percentage point from the same period last year. The EU ranks second at 12.8%, down slightly by 0.1 percentage points. Together, these two markets represent 28.2% of total exports. Vietnam ranks third, followed by Japan, with the top four markets showing a slight decline in share compared to last year.

Emerging markets are driving growth: Russia, India, Brazil, Malaysia, the UAE, and Saudi Arabia all saw export shares rise by 0.2–0.4 percentage points, indicating that market diversification is underway, with new markets becoming the main growth driver.

Except for South Korea, which saw a decline, all major export markets posted growth. Russia, India, Malaysia, the UAE, and Saudi Arabia saw increases exceeding 30%, while Australia and Brazil recorded growth above 20%.

From January to February, China exported 8.97 million tons of textile and apparel products (HS codes 50–63), up 25% year-on-year-faster than the growth in value. Cotton textile and apparel exports totaled 1.377 million tons, also up 25% year-on-year.

Exports of cotton textiles and apparel experienced a temporary decline during 2019–2023, influenced by trade tensions and the Xinjiang cotton ban. In 2024–2025, exports showed some recovery, indicating that the impact of these factors is gradually diminishing. Monthly export shares since mid-2023 show that cotton textile and apparel exports have remained in a fluctuating range, with the share actually increasing in the second half of last year. This suggests that the trade war initiated by the Trump administration had a greater impact on synthetic fibers or other categories than on cotton products.

Outlook:
The strong performance in January–February 2026 is encouraging. However, sustainability remains uncertain, especially in light of recent geopolitical events, including the outbreak of the U.S.–Israel–Iran conflict at the end of February, surging crude oil prices, and the closure of the Strait of Hormuz, all of which are affecting global trade supply chains. These developments will continue to be closely monitored.

Source: ccfgroup.com
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