Why is Xinjiang cotton boycotted?

2021-03-12 09:36

The United States launched the cotton war, aiming to strangle the Chinese textile industry.

Recently, the world's second largest fashion retailer H&M Group (Haynes Morris Apparel) issued a statement on its official website, claiming that it would "boycott Xinjiang cotton and textile factories". Subsequently, Burberry, Adidas, Nike, New Balance, Brands such as Tommy Hilfiger and Calvin Klein also expressed their "cutting" remarks with Xinjiang cotton.

Xinjiang cotton was boycotted because of the Sino-US cotton war that started last year. The United States first blacklisted several international garment companies, forcing them not to use Xinjiang-supplied products. Later, the United States said it would ban the import of cotton from China's Xinjiang region. some or all of the product made.

As for the Sino-US cotton war, the United States used human rights as an excuse to actually pull China down from the throne of the world's leading textile industry and combat China's absolute dominance of the global textile industry.

my country has become the world's largest producer, consumer and exporter of textiles and garments, and a country with the most complete textile industry chain and most complete categories.

This also marks that the world's textile industry is no longer coexisting with various centers, but has become a planet of the solar system surrounding China, the textile industry.

In the textile industry, China is no longer just a "factory" exporting large quantities of final goods to the world; China has become a new "superpower" through rapid industrial upgrading.

This is also the reason why Americans panic. The United States has begun to call for the return of the textile industry to the United States. A large number of foreign textile companies have invested in the United States, and the plant sites are concentrated in the southeastern part of the United States.

However, as the world's largest textile power, China's textile industry accounts for more than 50% of the world's total economy, which not only effectively meets the fiber consumption demand of China's 1/5 of the world's population and nearly 1/3 of the world's The country provides a large number of high-quality fiber products. Even if the textile industry returns to the United States, it will be difficult for the United States to build a complete textile industry and compete with China.

Therefore, the reason why the United States chose to start with Xinjiang cotton is that China's cotton production ranks second in the world. Due to the concentration of climate and production areas, compared with cotton from other domestic production areas, Xinjiang cotton's color, length, foreign fiber, and strength are all The best in the country. Xinjiang cotton accounts for 84.9% of the national output. At present, there are more than 14,000 cotton-related enterprises in Xinjiang, accounting for 10.28% of the country's total, of which more than 8,700 are cotton-planting-related enterprises, accounting for 11.45% of the country's total.

In addition to the export of cotton spinning end products produced by itself, there are many intermediate cotton spinning products exported to third-party countries, which are then processed into finished products and exported to Europe and the United States and other countries.

In addition, China's textile and apparel exports to Europe and the United States are mainly high-end products, and Xinjiang cotton accounts for a relatively high proportion of more than 95%.

Therefore, the United States wants to attack China's Xinjiang cotton, which will weaken the Xinjiang cotton textile industry, and the raw material guarantee of China's cotton textile and the entire industrial chain will also be challenged, which will affect the overall healthy development of China's textile industry.

Many people say that China's Xinjiang cotton is already oversupplied, and the US's blow is just a scratch. For example, the cotton output in 2020/2021 is about 5.95 million tons, of which Xinjiang cotton output is 5.2 million tons, the total demand is about 7.8 million tons, and the annual gap is about 185 tons. tons. Xinjiang cotton has been in short supply in the domestic market.

The reason why Xinjiang cotton is in short supply is because many brands in my country are OEMs around the world, and most overseas brands boycott Xinjiang cotton. Chinese OEMs must import more American cotton, Indian cotton, Egyptian cotton, raising cotton prices in the United States and India, and reducing Xinjiang cotton. The price of cotton has caused certain losses to Xinjiang cotton farmers and the industrial chain.

Like American cotton, it is mainly exported. In the past five years, US cotton exports accounted for more than 65% of its total output, and domestic cotton consumption was very limited. The latest data shows that in 2017, the total cotton production in the United States was 4.57 million tons, and the export volume was expected to be 3.226 million tons.

my country has always been at the forefront in the export market share of U.S. cotton. In 2016, the United States exported a total of 1.424 million bales of cotton to my country, accounting for 18% of its export share. With the suppression of Xinjiang cotton by the United States, many Chinese OEM companies will inevitably choose American cotton, thus the United States has digested domestic cotton stocks, which is beneficial to the American cotton industry.

The United States' attack on Xinjiang cotton will in turn affect the development of the entire domestic textile industry. It must be known that the output value of the entire Chinese cotton industry chain has reached 6 trillion, involving 25 million jobs and 20 million families. It can be said that the ambition of the United States is obvious. .

Although the United States continues to suppress China, China will still experience pain in the short term. But the US still underestimates China's absolute dominance of the global textile industry.

Due to the rapid growth of China's purchasing power, China has become one of the most important demanders of value added through trade in final goods. In other words, more countries, especially those in Asia, are already highly dependent on China's value-added supply and its demand for value-added directly and indirectly through global value chains.

For example, Vietnam's textile industry is highly dependent on China's raw and auxiliary materials - 55-60% of raw and auxiliary materials are supplied from China, especially clothing raw and auxiliary materials, yarns, fabrics, etc. are mainly imported from China. Without the supply of raw materials from China, Vietnam will not be able to complete the export of about 253.4 billion yuan of textile products.

With the rise of China, the friction between China and the United States will continue to escalate, and the game cannot stop until the other side admits defeat. On the other hand, the suppression of China by the United States is actually a recognition of China's achievements in development over the past 70 years.