A small town in Dongguan, Guangdong Province, has become one of the world’s largest knitwear manufacturing hubs, producing approximately 900 million sweaters each year—around 20% of global sweater output. Despite covering less than 100 square kilometers, Dalang has built a complete knitwear supply chain that generates more than 72 billion yuan (US$10.6 billion) in annual trade.
Dalang’s success is built on a highly integrated industrial ecosystem. Manufacturers, yarn suppliers, designers, and skilled workers are all located within a few kilometers of one another, allowing businesses to respond quickly to market demand while exporting products to more than 160 countries and regions.
The town’s knitwear industry began in the late 1970s and has continued to evolve through technological upgrades and government support. Today, factories in Dalang operate around 150,000 flat knitting machines, including over 10,000 computerized models, significantly improving production efficiency and product quality.
Artificial intelligence is now playing an increasingly important role in product development. At this year’s China Dalang Woolen Knitwear Fair, an AI-powered design platform demonstrated how designers can generate multiple knitwear concepts within minutes using keyword prompts. Trained on a database of more than 2 million knitwear patterns, the system has reduced design costs by more than 60% while shortening product prototyping from three days to just two hours.
The combination of AI design tools and smart manufacturing has enabled local companies to adopt flexible, made-to-order production, allowing new fashion designs to move from concept to market much more quickly.
Many manufacturers are also shifting toward higher-value products. Dongguan Tongfa Knitwears Co., Ltd., for example, has focused on premium knitwear, with annual sales growing between 20% and 30%. Around 70% of its products are exported to Europe and the United States, with factory prices ranging from US$25 to US$30 per garment. The company has invested heavily in product development, with research and design accounting for half of its total costs, and plans to establish a design studio in Europe.
Innovation extends beyond garment design to textile materials as well. Companies in Dalang develop nearly 10,000 new yarn products every year and hold more than 200 patents related to yarn technology, reinforcing the town’s competitive advantage in the global knitwear industry.
Supportive trade policies have also helped local businesses expand internationally. Since 2020, Dalang has implemented a market procurement trade model that simplifies export procedures for small and mixed-category shipments while reducing administrative costs. The program has expanded beyond knitwear to include products such as footwear, luggage, toys, plastics, and hardware.
By July 18, 2026, Dalang’s market procurement exports had reached 13.11 billion yuan for the year, while cumulative exports under the program totaled 220.06 billion yuan, serving customers in 225 countries and regions.
Through continuous investment in technology, design, advanced materials, and trade facilitation, Dalang has transformed from a traditional manufacturing town into a globally competitive knitwear center, demonstrating how industrial innovation can strengthen China’s position in international apparel markets.
