China’s textile and apparel industry has the potential to set the global standard for sustainable manufacturing, according to a new analysis released by Cascale, a non-profit organisation focused on driving positive change in the fashion value chain.
The report, titled China Country Report: Macroeconomic and Sustainability Analysis, draws on data from the Higg Facility Environmental Module (Higg FEM), a tool created by Cascale to measure the environmental performance of manufacturing facilities. The module evaluates factories on energy use, emissions, water and wastewater management, and chemical handling.
Jeremy Lardeau, senior vice president of the Higg Index, said that Cascale’s data provided “a powerful lens into where the industry is headed”. He added that China remained a pivotal player in global textile and apparel production and had already shown it could lead on innovation, technology adoption, and large-scale transformation. The opportunity, he stressed, lay in leveraging sustainability and innovation not only to meet regulatory and buyer requirements but also to secure long-term competitiveness in an evolving market.
The report highlighted several areas where China is making progress:
Green growth and renewable energy: With increasing investment in solar, wind, and hydro power, more factories are adopting clean electricity and energy-efficient systems. This could allow Chinese producers to offer “low-carbon apparel” as a competitive advantage.
Circular economy and recycling: In line with the national target of establishing a textile recycling system by 2025, companies are implementing water recycling, waste reduction, and textile reuse initiatives to tackle mounting waste.
Technological innovation and digitalisation: Automation, artificial intelligence, and smart factory models are boosting operational efficiency and reducing waste across facilities.
Market diversification: As demand in Western markets flattens, China is strengthening its domestic brands and focusing on emerging markets, with sustainability leaders well placed to capture new opportunities.
Policy and global collaboration: Government incentives and alignment with international sustainability frameworks are accelerating green technology adoption, with tools like the Higg FEM helping manufacturers demonstrate transparency.
Although the Higg FEM does not measure social responsibility, Cascale’s wider report acknowledged some improvements in wages and workplace safety across the country’s estimated 7.8 million textile and apparel workers. Persistent concerns remain, however, around long working hours, limited worker representation, and compliance gaps.
Harsh Saini, interim CEO of Cascale, said the organisation and its members were committed to tackling climate change while also supporting decent work. He emphasised that the new report demonstrated the need to pair decarbonisation with improvements in working conditions if China was to maintain competitiveness and meet global expectations.
Cascale’s findings suggest that embracing renewable energy, recycling, and digital transformation could help China not only reduce its environmental footprint but also strengthen its position as the world’s largest and most influential textile and apparel producer.
Bharat Tex Special Report 2026 
