Central Asia is expected to become a hot place for the transfer of China's textile industry.

Release time:

2019-05-29

The past five years will be a critical period for China's textile industry to lay out the international market. Not long ago, Duan Xiaoping, vice president of the China Textile Industry Federation and president of the China Chemical Fiber Industry Association, and his party went to Tajikistan, Uzbekistan and other Central Asian countries to investigate. He said that in the past five years, the speed of machine substitution in China's textile industry will continue to accelerate, and the level of mechanization will be greatly improved. Some enterprises that have not chosen machine substitution will choose to "go out", and this decision will be completed within 3-5 years. He hoped that China's textile industry and the textile industry of Central Asian countries would seize the opportunity to promote exchanges and interaction and promote win-win cooperation.

Tajikistan, located in southeastern Central Asia, was one of the first countries to respond to the Belt and Road Initiative. Uzbekistan is located in the hinterland of Central Asia and is an important fulcrum country for the construction of "the belt and road initiative. Duan Xiaoping, together with Liu Yanwei, vice president of the China Textile Construction Planning Institute, and Li Jie, secretary general of the China Cotton Textile Industry Association, investigated the two countries and found that Tajikistan's textile industry has ample room for development. The local cotton planting area is about 185000 hectares, with an annual output of 100000 tons of lint, of which only 20% is used for domestic production, and 80% of the spun yarn is exported to foreign countries. Uzbekistan has regarded the textile industry as an important industry for the national economy and export earnings. At present, Uzbekistan has more than 3500 textile enterprises and more than 4700 garment enterprises in the textile field, with an annual output of 700000 tons of cotton yarn, 1.2 billion meters of fabrics, 140700 tons of knitted fabrics, 2.2 billion pieces of clothing, 0.132 billion pairs of socks, and an export value of 1.257 billion US dollars (including cotton).

At present, the development of China's textile industry has encountered some challenges and difficulties. On the one hand, the aging of the population is accelerating, the effective labor force is decreasing, and the labor advantage in wages and other aspects is gradually disappearing; on the other hand, the Sino-US trade friction has led to the loss of international orders, and some customers are more inclined to choose products from overseas processing plants of Chinese enterprises to avoid risks. Chinese textile enterprises to invest in Tajikistan, Uzbekistan and other Central Asian countries can effectively meet the challenges.

After inspecting Tajikistan and Uzbekistan, Duan Xiaoping and his entourage found that Chinese textile companies investing in Tajikistan and Uzbekistan can effectively avoid the challenge of the gradual disappearance of cost advantages. In terms of energy, Tajikistan relies on abundant water resources for power generation, and the cost of electricity is equivalent to 0.35 yuan/kWh; in terms of employment, the local per capita wage is relatively low, ranging from 800 to 1000 yuan (after tax). Uzbekistan's energy prices are also very favorable, with electricity charges of about 0.25 yuan to 0.28 yuan/kWh; labor resources are rich and high-quality, and the average wage is about 1000 yuan/month. On the other hand, Chinese textile enterprises can also enjoy many preferential policies when investing in Tajikistan and Uzbekistan. In terms of taxation, Tajikistan stipulates that according to the size of the investment, enterprises can enjoy tax reduction standards for different years and different degrees. Enterprises investing in Uzbekistan can enjoy preferential customs clearance; each state of Uzbekistan has a free economic development zone, and enterprises investing in the park can enjoy 7 years of tax exemption.

Duan Xiaoping said that the visit to Tajikistan and Uzbekistan has been fruitful, and he is very optimistic about the prospects of Chinese textile enterprises investing in Central Asia. Liu Yanwei said that the "going out" of Chinese textile enterprises is the result of their own development needs and the external environment. Uzbekistan has rich cotton resources, attractive energy prices, high-quality and cost-effective labor force, coupled with Uzbekistan's political stability, is an important hub connecting Europe, these factors will make Uzbekistan an important choice for Chinese enterprises to invest.

(Source: International Business)

Sino-US trade friction accelerates the structural adjustment of China's textile and garment exports.

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