Investment advantages and plight analysis in Xinjiang
——Cheng SujingSenior Analyst, CCFGroup
2015-08-07 11:20:01

Firstly, she introduces the status quo of enterprises invested Xinjiang. Cotton yarn spindles grew rapidly and the growth rate in 2015 is estimated to exceed 50%. More than 90% of yarn in Xinjiang was cotton yarn but the cotton yarn production was below 400kt. Companies invested Xinjiang mainly focused on spinning, and the devolvement of weaving and apparel was slow.
Secondly, she analyzed the investment advantage in Xinjiang. 1. Policy advantage is apparent. Government support Xinjiang textile and apparel industry and provides subsidy like electricity charge and freight. Freight subsidy for cotton yarn outside Xinjiang is 700-1000yuan/mt. 2. Feedstock edge. VSF capacity in Xinjiang is around 550kt, sharing around 16% of national total. Price of Xinjiang cotton used by Xinjiang-based mills is around 1100-1300yuan/mt cheaper than that in inland, which means the Xinjiang-based cotton yarn 32S is around 1000-1200yuan/mt cheaper than that produced in inland. Processing cost of cotton yarn in Xinjiang is lower than that in inland too. Xinjiang enjoys great potential in growth seen from “One Belt, One Road”.
Finally, she introduced the plight when enterprises invested Xinjiang. Downstream sectors in Xinjiang is undeveloped. Transportation problem still exists. Enterprises face difficulty in recouping workers. Besides, the culture and religion difference is also a problem needing concern.