Since the beginning of 2026, the international environment has become increasingly complex and challenging, with the spillover effects of geopolitical conflicts spreading and the global economic recovery following a torturous path. Meanwhile, China’s economy achieved a solid start in the first quarter, with a year-on-year GDP growth rate of 5.0%, driven by rapidly expanding new growth drivers and a steadily recovering domestic market, laying a strong foundation for a sustained economic rebound throughout the year. Amid this complex landscape, China’s technical textiles industry has demonstrated notable resilience. Industrial value-added maintained its growth momentum, and both production and exports recorded year-on-year increases. However, the industry’s overall economic performance remained under some pressure. According to industry association surveys, the prosperity index of China’s technical textiles industry stood at 61.7 in Q1 2026, up 6.9 points from the same period in 2025, indicating a continued recovery in industry sentiment.

In terms of production, data from the National Bureau of Statistics show that demand in the nonwovens market remained robust from January to March 2026. Nonwovens output by enterprises above the designated size grew 5.8% year on year, while cord fabric (in tyres) output by enterprises above the designated size increased 3.8% year on year.

In terms of economic performance, data from the National Bureau of Statistics indicate that from January to March 2026, the total operating revenue and total profits of enterprises above the designated size in the technical textiles industry declined by 2.3% and 8.6% year-on-year, respectively. The operating profit margin stood at 3.1%, down 0.2 percentage points from the previous year.

By sub-sector, nonwovens enterprises above the designated size saw operating revenue decline by 3.3% year on year, but profitability improved notably, with total profits rising by 17.5% year on year and the operating profit margin increasing by 0.4 percentage points to 2.5%. The ropes, cords, and cables sector got off to a strong start, with operating revenue and total profits of enterprises above the designated size growing 6.6% and 21.2% year on year, respectively, and the operating profit margin rising 0.4 percentage points to 2.9%. The textile belts and tire cord sector faced significant profitability pressure, with operating revenue and total profits of enterprises above the designated size falling 7.5% and 30% year on year, respectively, and the operating profit margin declining 0.7 percentage points to 2.2%. The tarpaulins and canvas sector saw operating revenue of enterprises above the designated size grow by 9.3% year on year, while total profits declined by 4.9%, with the operating profit margin dropping by 0.6 percentage points to 4.1%. Other technical textiles, including construction and protective textiles, recorded declines in operating revenue and total profits of enterprises above the designated size of 4.9% and 25% year-on-year, respectively, but their operating profit margin of 4.3% remained the highest in the industry.

For listed companies in the technical textiles industry, the first quarter of 2026 was marked by revenue growth accompanied by profit pressure. The 35 listed companies recorded an 8.8% year-on-year increase in operating revenue, while total profits declined 7.2% year on year. Among them, listed companies in the medical and hygiene textiles, nonwovens, and filtration and separation textiles segments started the year on a positive note, whereas those in the safety and protective textiles and synthetic leather textiles segments faced greater pressure on operational performance.

On the international trade front, according to China Customs data (based on 8-digit HS code statistics), China’s technical textiles industry recorded exports of US$10.83 billion from January to March 2026, up 4.6% year on year. Imports totaled US$1.31 billion, up 3.4% year on year. The sub-product exports are shown in the table below.

Table: Export Performance of China’s Technical Textiles Industry in January–March 2026

Source: China Customs

Currently, the United States, Vietnam, Japan, South Korea, and Russia are the top five export markets for China’s technical textiles, accounting for approximately one-third of total exports. In Q1 2026, overseas market demand for China’s technical textiles maintained an overall stable growth trajectory, though trade with the United States came under notable pressure, with exports declining 9.9% year on year. By market, exports to emerging markets stood out with particularly strong growth. Exports to Belt and Road partner countries grew 7% year on year, effectively offsetting the impact of declining exports to the United States. Exports to Russia, Thailand, and Germany grew rapidly, up 21.3%, 12.8%, and 12.6% year on year, respectively.

At present, downside risks dominate the global economic recovery. The International Monetary Fund (IMF), in its latest World Economic Outlook released on April 14, revised its 2026 global growth forecast down by 0.2 percentage points to 3.1%. Domestically, the Chinese economy has continued to trend upwards. China is accelerating the cultivation of new quality productive forces, with production and supply growth picking up and market demand continuing to improve. Looking ahead to the second quarter of 2026, China’s technical textiles industry is expected to maintain stable operations amid a complex and challenging external environment. High-end, green, and digital transformation will remain the primary directions of industry development, while demand from healthcare, new energy, environmental protection, and automotive sectors will provide strong momentum for industry growth. At the same time, the industry faces challenges, including intensifying trade protectionism and a slower-than-expected recovery in domestic demand. Industry enterprises should seize policy opportunities, accelerate technological innovation and product upgrading, actively expand into emerging markets, enhance core competitiveness, and drive the high-quality development of the industry.

Source: CHINA TEXTILE LEADER Express