Trade War Affects Xinjiang Yarn Production Policy Support To Downstream Migration

In May 29th, the cotton growing area and growth situation of cotton in Xinjiang (Southern Xinjiang) hosted by Zhengzhou commodity exchange and China Cotton Storage Information Center Co., Ltd. were visited by Xinjiang Korla economic and Technological Development Zone.

According to Liu Qin, director of the development and Development Bureau, the textile and garment industry in Xinjiang has developed rapidly in the past three years. At present, the development zone has built three million spindles factories, including 153 thousand air jet spinning, 13 thousand swirling spinning, 800 thousand ring spinning, and a series of downstream projects such as two printing and dyeing factories, carpets and woolen scarf.

In 2018, the output value of textile and apparel in the Development Zone reached 12 billion 400 million, an increase of 9.7% over the same period, and nearly 500 thousand tons of yarn production.

The first quarter of this year was affected by the Sino US trade war, with a large number of orders missing. The output value of production dropped by 10% to 3 billion US dollars.

In order to offset the adverse effects of trade war, the development zone is also actively guiding enterprises to reduce costs, increase efficiency and save costs, and actively open up other markets and enhance competitiveness.

In the future, the direction of policy support in Xinjiang is still shifting to the downstream of textile and clothing, and the support will increase substantially compared with the previous five years.

When the downstream industry is not fully developed, the support force of printing and dyeing plants is relatively large.

At present, two printing and dyeing factories have been put into operation in the Development Zone, which has become a key link in solving the downward and extending development of the textile and garment industry chain.

Xinjiang Li Tai silk road is the most representative pure cotton yarn production enterprise in the development zone. There are three industrial parks in Korla, Kuitun and Uzbekistan in Xinjiang.

As of the end of this year, the scale of yarn put into operation in Xinjiang will reach 3 million spindles, and cotton consumption will reach 30-35 tons.

Affected by the Sino US trade war, the yarn production of the textile mill decreased by 30% in the 1-5 months, which is expected to continue until the end of the year.