The United States strengthens control of Xinjiang-related products. How much is Xinjiang's textile industry affected?
2021-07-26
Gester Instruments
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According to feedback from some textile and apparel foreign trade companies in Shanghai, Jiangsu, Zhejiang and other places, recent U.S. buyers and retailers have requested orders not to use Xinjiang cotton (the processor needs to provide the cotton’s origin certificate). Other departments issued the 'Xinjiang Supply Chain Business Advisory Announcement,' claiming to strengthen export controls and sanctions related to Xinjiang. In addition, the U.S. government requires U.S. persons and non-U.S. persons to gradually settle transactions with entities in which the Xinjiang Production and Construction Corps directly or indirectly owns 50% or more of the equity before September 30, 2020; the relevant transactions cannot be settled before September 30 For transactions, you need to seek guidance from the U.S. Treasury Department. In order to reduce troubles and avoid risks, some US customers have made clear orders to ban Xinjiang cotton. Domestic export-oriented textile and clothing enterprises and foreign trade companies in coastal areas said that because the order recovery from US buyers from June to August was much slower than Europe, the Middle East, Japan and South Korea, etc., the contracts were still 'short, flat, and fast'. It has an impact on the consumption demand of cotton in Xinjiang, but it is not prominent. The enterprises solve the problem by purchasing high-quality bonded cotton in the port and customs clearance. According to industry insiders, if the United States threatens customers in other regions to ban the use of Xinjiang cotton, it will have an adverse impact on my country's textile and apparel exports that have just improved, especially orders for high-end, high-profit products exported to Europe and the United States will have a greater impact.
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