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Chinese govt to invest in Xinjiang textile industry
Jan '14
The Government in China will invest 10 billion yuan of special funds to support the development of the textile industry in Xinjiang, aimed at creating 100 million jobs. To support the Central incentive, the regional government will also invest an equal amount for developing the textile industry in Xinjiang.
The funds are mainly to be used in three areas—to support the introduction of mainland textile and clothing manufacturers in Xinjiang, to provide subsidies and other freight and tax benefits to Xinjiang run textile enterprises, and to support the infrastructure of the textile industrial park.
In accordance with the current plan, the development of the textile industry in Xinjiang will see implementation of ‘Three cities, Seven parks, and a Centre’. The three cities refer to Aksu, Korla and Shihezi, while the seven parks are Hami, Bachu, Alar, Shaya, Manas, Kuitun, and Huoerguosi. Centre refers to the construction of textile and clothing trade center in Urumqi.
An estimated 200,000 people are currently employed in Xinjiang textile and garment industry, which has been struggling with losses in recent times.
In 2013, Xinjiang produced 3.4 million tons of cotton, accounting for about half of the total cotton produced in the country. In fact, cotton accounts for about 35 percent of the income of farmers in Xinjiang, and it contributes between 50 percent and 70 percent to income of farmers in the southern counties. The cotton production greatly affects the processing industry, and the Central and regional government support to the Xinjiang textile industry can be termed as ‘timely’.

Fibre2fashion News Desk - India

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