{"id":1737,"date":"2026-09-16T01:58:11","date_gmt":"2026-09-16T01:58:11","guid":{"rendered":"https:\/\/asianknit.com\/?p=1737"},"modified":"2026-09-16T02:14:37","modified_gmt":"2026-09-16T02:14:37","slug":"china-textile-industry-contraction-firms-exit","status":"publish","type":"post","link":"https:\/\/asianknit.com\/zh\/china-textile-industry-contraction-firms-exit\/","title":{"rendered":"China\u2019s textile industry faces further contraction as nearly 1,500 firms exit"},"content":{"rendered":"

China textile factory contraction<\/strong> is reshaping the country\u2019s apparel supply chain. China\u2019s textile and apparel industry is showing signs of further contraction. Around 1,500 companies are estimated to have exited official industrial-enterprise statistics in the first half of this year, according to a report by The Epoch Times (TET).<\/p>\n\n\n\n

\"China<\/figure>\n\n\n\n

Industry stats behind China textile factory contraction<\/h2>\n\n\n\n

Furthermore, data from the Hong Kong General Chamber of Textiles reflects this adjustment. The count of \u201cabove\u001escale\u201d textile companies dropped by 389 year\u001eon\u001eyear to 20,806 from January to May.<\/p>\n\n\n\n

Over the same months, above\u001escale firms within textile, clothing and apparel sectors fell by roughly 1,101. Industry organisations estimate around 1,490 firms from these two groups left the statistical pool in the first half\u001eyear, as cited by TET.<\/p>\n\n\n\n

Moreover, China\u2019s National Bureau of Statistics defines \u201cabove\u001escale\u201d textile firms. These enterprises hit minimum annual revenue of 20 million yuan ($2.98 million).<\/p>\n\n\n\n

Leaving this statistical group does not equal bankruptcy. Businesses may slip under the revenue threshold, go through restructuring, or file for bankruptcy.<\/p>\n\n\n\n

Market signals: order shifts & production relocation<\/h2>\n\n\n\n

Meanwhile, reports of factory shutdowns and overseas production transfers raise industry outlook concerns, per the TET report.<\/p>\n\n\n\n

Anonymous industry insiders shared real\u001eworld market feedback. One Zhejiang\u001ebased textile business owner noted clear order\u001estructure changes. Orders now lean heavily toward short\u001eterm, small\u001evolume contracts. In former years, one single order could sustain months\u001elong production. Many current orders only run for a few days without stable commitment.<\/p>\n\n\n\n

Additionally, foreign\u001einvested manufacturers also face operational pressure. Chinese trade platform AMZ 123 published news on September 9. Jiaxing Kanglong Textile Co., a US\u001efunded Zhejiang enterprise, started winding\u001edown procedures.<\/p>\n\n\n\n

It plans to halt production by the end of 2026. Part of its denim output will shift to Mexico. The enterprise itself has not yet verified this news.<\/p>\n\n\n\n

\u00a0Mixed official economic performance<\/h2>\n\n\n\n

Official national statistics deliver a mixed view of the whole textile sector. Data released August 27 from China\u2019s National Bureau of Statistics covers January\u001eJuly performance.<\/p>\n\n\n\n

Above\u001escale textile companies reached 1.238 trillion yuan ($184.6 billion) in revenue. This marks a 2.2 per cent year\u001eon\u001eyear rise. Their combined profits grew 7.9 per cent to 32.68 billion yuan ($4.87 billion).<\/p>\n\n\n\n

In contrast, the apparel segment paints a different picture. Apparel sector revenue hit 562.63 billion yuan ($84 billion) over the same period, down 3 per cent year\u001eover\u001eyear. Its total profits stood at 16.81 billion yuan ($2.51 billion), based on official data quoted by TET.<\/p>\n\n\n\n

For more global supply\u001echain analysis, read our related article on knitwear trends<\/a>.<\/p>\n\n\n\n

<\/p>","protected":false},"excerpt":{"rendered":"

China textile factory contraction is reshaping the country\u2019s apparel supply chain. China\u2019s textile and apparel industry is showing signs of further contraction. Around 1,500 companies are estimated to have exited official industrial-enterprise statistics in the first half of this year, according to a report by The Epoch Times (TET). Industry stats behind China textile factory […]<\/p>\n","protected":false},"author":1,"featured_media":1738,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_gspb_post_css":"","footnotes":""},"categories":[201],"tags":[149,191,197,174],"class_list":["post-1737","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-knitwear-trends","tag-apparel-industry","tag-apparel-oem-china","tag-asian-pattern-grading","tag-fashion-knit"],"blocksy_meta":[],"yoast_head":"\nChina Textile Factory Contraction: 1500 Firms Exit Industry<\/title>\n<meta name=\"description\" content=\"China textile factory contraction: nearly 1500 firms exit stats. 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