Report of Chinese cotton and textile industry

This Report Alianca Cotton Weekly English about Chinese cotton and textiles is the sort of report many might be tempted to file before reading.

However, many were surprised in the textile industry about 5-7 years ago when China started creating conditions in eastern China which encouraged the textile industry to move offshore.

More recently, about 3 years ago China bought in heavy stocks of cotton, as it appeared to move 3 million tons of cotton growing areas over to food.

This report shows how the Silk Road was well advanced in implementation long before it was made public.

This report shows how China is incentivising their textile industry to relocate in Xinjiang where lower cost cotton is available, from the bugling reserves, at very attractive prices.

This will stimulate production and export West from China to Central Asia and Europe.

While the high speed trains and roads and canals are being constructed, there are already many normal train connections to Europe from China.

The broad numbers are:

China production of cotton c 7 million tons. China’s future production of cotton c 4 million tons, mainly in Xinjiang. This is buffered by huge reserves, estimated at 3-5 years of China’s import needs.

Moving 1 billion peasants was a sight, is an incredible sight to behold.

Building the world’s biggest exporters of textiles in 10 years from 1987 in Eastern China was the forefront of China being the world’s largest exporter.

Transferring millions of tons of cotton growing to Central Asia and Africa is incredible and now about 50pc done.

Transferring the textile industry to Xinjiang, Central Asia, South East Asia and South Asia as well as Africa is also 50pc done.

This has the side benefit of transferring jobs from East to West China and reducing pollution in East China.

The future flow of gas from Russia will further reduce dependency on coal and , like North Sea Gas, herald the change of cities from coal sourced energy to gas.

The Chinese think big and plan and test. When they are ready, they tell those who have not seen the evidence.

So the Silk road is already happening all round.

Stephen



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