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China textile industry shows resilience as US Xinjiang sanctions bite
A cotton-ginning mill operator said local cotton product processing rates are running at around 30 to 40 percent, suggesting limited immediate disruption.
South China Morning Post reports that the US addition of 43 Chinese companies to an import blacklist in late July, tied to allegations of forced labour in western Xinjiang, has not triggered the kind of panic that previously surrounded Xinjiang cotton.
According to a cotton-ginning mill owner in southern Xinjiang, speaking on condition of anonymity, the reaction in the region was relatively calm and the sanctions are not expected to have much impact on the sector.
The outlet reports that local processing rates for cotton products are “remarkably high,” at roughly 30 to 40 percent, while investment and development across the cotton textile supply chain are increasing.
SCMP also links the shift in sentiment to broader changes in global politics, pointing to export diversification and a different balance of power between China and the US, especially after last year’s sweeping trade war.