Despite US sanctions on Xinjiang cotton, China’s textile industry weathers the storm
When the US government announced the addition of 43 Chinese companies to an import blacklist in late July over allegations of forced labour in the country’s western Xinjiang Uygur autonomous region – including several household food and apparel brands – the local reaction to the news was surprisingly calm. “It felt like a sudden batch of companies was added out of nowhere … but it shouldn’t have…
Despite the US government adding 43 Chinese companies to an import blacklist in late July due to allegations of forced labor in Xinjiang – a region known for producing a large portion of the world's cotton – the local reaction in China appeared to be surprisingly calm. According to a cotton-ginning mill owner in southern Xinjiang, who spoke anonymously, the recent addition to the list should not significantly impact the sector.
In contrast, four years ago, the same owner was worried about a massive stockpile of unsold cotton and the potential loss of downstream buyers due to the Uygur Forced Labour Prevention Act (UFLPA). The mill owner noted that Xinjiang cotton processing rates are "remarkably high," with 30 to 40 percent, and development across the cotton textile supply chain is booming.
This change in attitude might indicate a broader shift in the global political landscape, as Chinese industries appear to be reacting to US sanctions with greater resilience and confidence. However, analysts and industry insiders urged caution, stating that the risks for Chinese firms would only increase amid lingering bilateral tensions.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
