China Textile City in Shaoxing. [Photo/Tide News]

China Textile City, the world's largest textile distribution hub in Shaoxing, Zhejiang province, posted strong growth in the first half of 2026, with total transactions reaching 237.06 billion yuan ($34.96 billion), up 9.26 percent year-on-year.

This solid performance came despite a challenging global trade environment, highlighting the market's resilience and continued competitiveness.

A key driver has been the market's digital transformation. The newly launched AI fabric 3.0 platform allows buyers to search for fabrics simply by taking a photo and describing what they wish to buy by voice. The system instantly matches users with suppliers while providing details such as fabric composition, minimum order quantities and supplier locations, streamlining the entire sourcing process from inspiration to order placement.

China Textile City has also strengthened its specialized business ecosystem. Building on 14 themed trading zones, the market is expanding dedicated areas for outdoor functional fabrics and plush textiles while developing the Zhiguangli commercial district, which combines shopping, cultural experiences and social activities.

Its global footprint continues to grow as well. During the first half of the year, two overseas centers opened in Dhaka, Bangladesh, and other international markets, while a public overseas warehouse was launched in Lagos, Nigeria. The cross-border e-commerce innovation center at China Textile City has attracted 39 companies. The expansion of overseas channels helped boost market procurement exports to $2.04 billion in the first five months of the year, up 25.72 percent year-on-year.