Chinese firms eye local market due to Western crackdown
Though the pandemic and crackdown by the US and other western countries on Chinese enterprises, have not affected the exports of some firms in North Western Xinjiang, many companies are exploring the domestic market.
Beijing, China
Many textile and cotton exporters in Xinjiang province of China are now focusing on the domestic market due to Covid 19 pandemic and crackdown by the US and other western countries on Chinese enterprises.
Experts say uncertainties have forced Chinese firms to give a priority to local market to avert risks. According to Liu Haifeng, CEO, China Coloured-Cotton Group, the company is now focusing on selling its product in the domestic market because its export volume is relatively low. He also said that export to Japan and South Korea will continue as before, though the company’s export to Europe has slightly dropped.
As per some Xinjiang enterprises, home consumers have extended support so the companies will now focus more on their domestic sales. Cheng, Analyst and Investor, said that China’s economic growth has been steady while repeated virus outbreaks in other foreign countries have increased uncertainties in foreign trade.
According to the data released by the Department of Agriculture and Rural Affairs, Xinjiang, the machine-picking rate exceeded 90% in northern Xinjiang. This rate is expected to reach 88% in the entire Xinjiang in 2021.
The statistics say that Xinjiang accounts for 87% of China’s total cotton production. Also, as per statistics from China Cotton Industry Association, around 2 million tons of cotton in China relied on imports.
Source: Global Times
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