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China textile sector sees further contraction

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Industry data points to a reduced number of larger textile and apparel producers, despite growth in sector revenue and profits

A Chinese worker handles production of yarn at a knitting mill in Binzhou, Shandong province

Beijing - China’s textile and apparel industry is facing further consolidation, with an estimated 1,490 companies leaving the country’s official above-scale industrial statistics pool during the first half of 2026.

Data cited by the Hong Kong General Chamber of Textiles indicates that the number of above-scale textile companies fell by 389 year-on-year to 20,806 between January and May.

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