Recently, the State Council issued the “Overall Plan for China (Xinjiang) Free Trade Pilot Zone”. Xinjiang’s textile industry has ushered in new opportunities for development, and “Xinjiang blanks” have once again returned to everyone’s field of vision.
Cheap “Xinjiang billet”
In the past two years, textile production capacity has been rapidly transferred to the central and western regions, and “Xinjiang gray fabrics” are the representative of this. Because of policy advantages, land advantages, labor costs and other advantages, the price of gray fabrics produced in Xinjiang when shipped to the Yangtze River Delta is actually higher than that of local production. is even lower, so it has become a daily topic for many textile people.
However, because the production capacity of “Xinjiang gray” has not yet been fully developed at this stage, the quantity is limited. After being transported, it will just flow into the sea in the mud. It is only equivalent to an extra batch of low-priced fabrics on the market, which will have an impact on the gray fabric market of traditional textile clusters. Not big. The market’s reaction was more that it was surprised by its low price and became a talking point. The actual impact was relatively limited, but this limitation is only the current situation.
Unique advantages
The notice mentioned that Xinjiang’s traditional advantageous industries should be expanded and strengthened, especially textile industries such as textiles and clothing that can greatly promote employment, and Xinjiang’s textile industry chain should be improved. In the textile industry, Xinjiang also has unique advantages.
1. Xinjiang has my country’s 9% cotton production capacity and a layout PX production capacity, it has certain chemical fiber production capabilities, and has origin advantages in raw materials;
2. Compared with the southeastern coastal areas, Xinjiang is vast and sparsely populated, with abundant land resources and lower land costs;
3. After the country vigorously promotes new energy construction, Xinjiang has huge photovoltaic power generation capacity and cheaper electricity;
4. The Xinjiang border accounts for about a quarter of the total length of the country’s land borders, connecting China and Central Asia, and with eight countries The border is an important transit point for China’s textile industry to export to Central Asian countries in the future.
In addition, the development of Xinjiang’s textile industry also conforms to the general trend of the world’s political and economic situation in recent years and the overall development trend of my country’s textile industry.
First, textile production capacity has been transferred to the central and western regions. Traditional textile clusters in the southeastern coastal areas have been continuously reducing production capacity in recent years and are committed to upgrading production capacity and extending and broadening the industrial chain. However, traditional production links are rapidly shifting. . The transfer of production has led to the transfer of employment, which will drive economic development in the central and western regions. Xinjiang is one of the places to undertake this kind of production capacity transfer.
Second, the focus of foreign trade has begun to shift from traditional developed countries to some emerging economies. In recent years, some Western countries have been looking for alternatives to Chinese manufacturing, vigorously supporting the development of manufacturing in Southeast Asian countries, and adopting different tax rates. filter. my country’s response to this is to sign the RCEP agreement and continue to promote the “One Belt, One Road” initiative to establish win-win cooperation with more emerging economies. Foreign trade has gradually shifted from sea trade to sea trade. If trade and land trade develop together, then Xinjiang will become an important node for external land trade due to its location advantages.
A “two blooms” situation may be formed
Let’s go back to the “Xinjiang blanks” that textile people are more concerned about at the beginning. With the continuous development of Xinjiang’s textile industry and the continuous improvement of production capacity, its production costs are far lower than those in the southeastern coastal areas, which will inevitably have an increasing impact on traditional textile clusters. impact. The current market is very involution. Many gray cloth factories are operating at breakeven. Especially for some conventional products, there is basically no room for price reduction. At this time, the difference of one or two wool per meter of cloth can be decisive for customers’ choices. effect.
Of course, the low price of Xinjiang blanks now reported online is largely due to subsidies for freight. After all, the freight cost of “Thousand Miles Raid” is not low, but this kind of subsidy cannot last forever, and the cost advantage is difficult to exist forever. . In the future, more Xinjiang billet production may be exported to Central Asia and countries along the route via land routes to meet the needs of consumers in surrounding markets and form a “double bloom” situation with the coastal textile industry.
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