[ad_1]
BEIJING (China Daily / ANN): The boycott of cotton from the Xinjiang Uygur Autonomous Region in northwest China will disrupt normal global supply cooperation, severely damaging the global industrial and supply chain, especially as the The global economy has yet to recover from the impact of the COVID-19 pandemic, industry experts said on Friday (March 26).
They said that restrictions on Xinjiang’s global cotton supply chain are interfering with the normal functioning of the global industrial and commercial market and will harm not only the global textile industrial system, but also the interests of global consumers.
The comments came as the Chinese public expressed outrage to discover that several large global retail giants, including H&M and Nike, have chosen not to source cotton from the region over “forced labor” allegations based on lies and false information.
The Chinese public’s support for Xinjiang cotton led to shares of cotton companies listed in Shanghai and Shenzhen rising 2.33 percent on Friday, according to Shanghai-based information provider Wind Info.
Shares of Chinese national sportswear groups also rose on Friday. On the Hong Kong Stock Exchange, Li Ning was up nearly 3 percent, while Anta was up more than 5 percent and Xtep was up nearly 3 percent.
However, ICE cotton futures fell to their lowest level in more than three months on Thursday amid market concerns over the boycott.
Mei Xinyu, a researcher at the Chinese Academy of International Trade and Economic Cooperation, said the boycott is interfering with the normal order of the industry and the market, which will increase costs and severely impact the global market.
However, Mei said that the restrictions on Xinjiang’s global cotton supply chain will not hamper China’s long-term development due to a pause between supply and demand.
Official data showed that China produced around 5.95 million metric tons of cotton during the 2020-21 season, while its total demand reached 7.8 million tons during the same period.
“The impact of the boycott will drive China to focus on the weak links in related industries, which favors sustainable development and ensures long-term economic and social stability.”
Yang Shu, an associate professor at the China Agricultural University, said the Xinjiang cotton boycott is a game involving political and economic interests.
“Xinjiang cotton is not a regional product, but it is deeply embedded in the international trading system.”
Yang said the boycott will affect the development of China’s textile industry and international trade, and will also affect employment in Xinjiang.
“Faced with the complicated international situation, Chinese cotton producers and related companies must protect their rights by legal means. And the country should do everything possible to have a much greater voice in the cotton textile industry and strive to participate in the formulation of norms and prices.
“More efforts should also be made to diversify the design of the industrial chain, improve the ability to defend against risks, drive innovation and further improve product quality,” Yang added.
China is the second largest cotton producer in the world and Xinjiang is the largest cotton producing area in the country.
Xinjiang manufactured 5.2 million metric tons of cotton during the 2020-21 season, about 87 percent of the country’s total production, data from the China Grain Reserve Group showed.
At the end of 2019, Xinjiang had 808 cotton processing enterprises, accounting for 84 percent of the country’s total, according to the China National Textile and Apparel Council.
“In fact, the world needs Chinese textile and apparel products as global consumers enjoy quality and affordable apparel and apparel products from China,” said Liu Jie, senior cotton market analyst at Sublime China Information.
Data from the General Administration of Customs showed that China’s textile and apparel exports rose 9.5 percent year-on-year to $ 291.22 billion last year, making it the largest exporter of textiles. and garments of the world. These products are mainly exported to the European Union, the United States and Southeast Asia.
Liu had an optimistic view of the future development of Xinjiang cotton, saying that China should pay close attention to the global market situation and should strive to gain more pricing power in the cotton market.
They said that restrictions on Xinjiang’s global cotton supply chain are interfering with the normal functioning of the global industrial and commercial market and will harm not only the global textile industrial system, but also the interests of global consumers.
The comments came as the Chinese public expressed outrage to discover that several large global retail giants, including H&M and Nike, have chosen not to source cotton from the region over “forced labor” allegations based on lies and false information.
The Chinese public’s support for Xinjiang cotton led to shares of cotton companies listed in Shanghai and Shenzhen rising 2.33 percent on Friday, according to Shanghai-based information provider Wind Info.
Shares of Chinese national sportswear groups also rose on Friday. On the Hong Kong Stock Exchange, Li Ning was up almost 3%, while Anta was up more than 5% and Xtep was up almost 3%.
However, ICE cotton futures fell to their lowest level in more than three months on Thursday amid market concerns over the boycott.
Mei Xinyu, a researcher at the Chinese Academy of International Trade and Economic Cooperation, said the boycott is interfering with the normal order of the industry and the market, which will increase costs and severely impact the global market.
However, Mei said that the restrictions on Xinjiang’s global cotton supply chain will not hamper China’s long-term development due to a pause between supply and demand.
Official data showed that China produced around 5.95 million metric tons of cotton during the 2020-21 season, while its total demand reached 7.8 million tons during the same period.
“The impact of the boycott will drive China to focus on the weak links in related industries, which favors sustainable development and ensures long-term economic and social stability.”
Yang Shu, an associate professor at the China Agricultural University, said the Xinjiang cotton boycott was a game involving political and economic interests.
“Xinjiang cotton is not a regional product, but it is deeply embedded in the international trading system.”
Yang said the boycott will affect the development of China’s textile industry and international trade, and will also affect employment in Xinjiang.
“Faced with the complicated international situation, Chinese cotton producers and related companies must protect their rights by legal means. And the country should do everything possible to have a much greater voice in the cotton textile industry and strive to participate in the formulation of norms and prices.
More efforts should also be made to diversify the design of the industrial chain, improve the ability to defend against risks, drive innovation and further improve product quality, “Yang added.
China is the second largest cotton producer in the world and Xinjiang is the largest cotton producing area in the country. Xinjiang manufactured 5.2 million metric tons of cotton during the 2020-21 season, about 87 percent of the country’s total production, data from the China Grain Reserve Group showed.
At the end of 2019, Xinjiang had 808 cotton processing enterprises, accounting for 84 percent of the country’s total, according to the China National Textiles and Apparel Council.
“In fact, the world needs Chinese textile and apparel products as global consumers enjoy quality and affordable apparel and apparel products from China,” said Liu Jie, senior cotton market analyst at Sublime China Information.
Data from the General Administration of Customs showed that China’s textile and apparel exports rose 9.5 percent year-on-year to $ 291.22 billion last year, making it the largest exporter of textiles. and garments of the world.
These products are mainly exported to the European Union, the United States and Southeast Asia.
Liu had an optimistic view of the future development of Xinjiang cotton, saying that China should pay close attention to the global market situation and should strive to gain more pricing power in the cotton market. – China Daily / Asia News Network
[ad_2]
