Nov 11, 2025 (MarketLine via COMTEX) --
Xinjiang has long been a cornerstone of China's fashion and textile industry, primarily as a major cotton producer and it remains focused on boosting its position as a fibre and textile supply hub.
The US government enactedAthe?Uyghur Forced Labor Prevention Act (UFLPA)?in 2021 to stop theAentry ofAXinjiang goods, which US customs authorities decided wereAmadeApartly throughAforcedAlabourAinAthis autonomous region, which has aAsignificantATurkicAUyghurApopulation.
Xinjiang doubles down on boosting its fashion, textile, fibre supply hub Ever since, the local industryAhas been doubling down on enhancing its position as aAfibreAand textile supply hub.ATheAregionaEUR(TM)sAshiftAtoward more value-added processingAincludes blending cotton with syntheticAfibresAto create diversified products.AA
The governmentAof theAXinjiangAUygur Autonomous Region (XUAR)Ais?supporting this transition through subsidies for technology and equipment upgrades in factories moving from pure cotton-spinning to blend-spinning operations. The latest set ofAnineAlandmarkApolicy measures came in JulyAthrough aANew Government Directive [2025] No. 26Aissued by the regional government. It offersAsubsidies forAequipmentAupgrades,AdirectAsalesAsubsidiesAand support for downstreamAgarmentAand home textile enterprises.
aEURoeThese incentives aim to boost local processing capacity and integrate Xinjiang more deeply into national supply chains,aEUR said Fan Di, associate professor at The Hong Kong Polytechnic UniversityaEUR(TM)s School of Fashion and Textiles.A
Speaking to JustAStyle, he added:AaEURoeThe industry is alsoAmodernisingAfrom traditional cotton farming and milling to intelligent, digitally driven operations, with local authorities promotingAthe adoption of AI and IoTA[Internet of Things]Afor production, supply chain management, and sustainable farming practicesAamong textile firms.aEURA
FanAaddedAthat companiesAsecuringAnational certificationAfrom a range ofAagencies led by ministry of industry and information technologyAasA'intelligent factories'Acan receiveAeven moreAsubstantialApublicAfinancial supportAaEUR" withAsubsidies being paid in many instances by provincialAgovernments.AAccording to Fan, this push aligns with China's broader goals for high-tech manufacturing, positioning Xinjiang as a leader in efficient, eco-friendly textile production and potentially increasing output quality and competitiveness.A
Surge in Xinjiang's blended and synthetic yarn production The Hangzhou-based textileAthinkAtankAtheACCFGroupAprojected that with subsidies in place, Xinjiang's production of blended and synthetic yarns is expected to surge, furtherAconsolidatingAits dominance in the domesticAtextileAmarket.AAccording toAtheACCFGroup, Xinjiang holds a commanding position inAsupply ofAmid-range yarnsAto Chinese textile manufacturers.AGoing forward,Athe think tankAexpects XinjiangAtoAmonopoliseAhigher-count yarns,Awith rising shares of combed, blended, and high-count carded yarns.A
aEURoeThe transformation of Xinjiang cotton into finished products within the region will accelerate, reducing the amount transferred to inland consumption hubs,aEURACCFGroupAwrote in an analysis publishedAin JulyAbyAHangzhou-basedAindustry information serviceAChinaTexnet:AaEURoeThis shift may necessitate revisions to cotton import quotas, including quota size, application rules, and distribution methods, to better align with the evolving demand of spinning mills across the country.aEURA
In view of these dynamics, Fan expects the Xinjiang textile industry to attract more investment in the future, not least due to itsAfar-westAstrategic location as a Belt and Road Initiative (BRI)Ahub enhancing its appeal for investments, borderingAIndia, Afghanistan, Tajikistan, Kyrgyzstan, Kazakhstan, Russia and Mongolia.AA
aEURoeAmid uncertainties like US tariff policies, Chinese textile firms are diversifying export markets beyond the US to the Middle East, Europe, and Belt and Road Initiative (BRI) countries,aEUR Fan said,Areferring toAUS tariffs onAgarment and textileAimports from?China?changing rapidlyAsince Donald Trump became US president inAJanuary: aEURoeXinjiang's strategic location as a BRI hub enhances its appeal for investments, facilitating easier access to these regions.aEURA
FanAaddedAthat the Hong Kong-headquartered garment manufacturer Esquel Group has expanded operations in Xinjiang since 2020,AestablishingAfactories targeted at domestic Chinese markets and BRI partners, rather than the US or Europe.
TheAcompanyAisAbuilding an innovativeAfactory thatAutilisesAwaterless dyeing technology inAnorthernAXinjiangaEUR(TM)sAShihezi.A
In July, Marjorie Yang,AchairmanAof the group, was cited by ChinaaEUR(TM)s official news outlet Xinhua as stressing thatAaEURoeXinjiang offers the best cotton and the most affordable energy.aEURA
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