Xinjiang cotton has entered the picking period one after another, and Chinese enterprises actively respond to the "Xinjiang cotton ban" evil method in the United States

Two means of the United States

"We planted cotton in Xinjiang. This year, it should be a harvest year," said Huang Hongyu, president of Henan Tongzhou Cotton Industry Co., Ltd., said in an interview with the Global Times reporter that it is expected to be higher than last year. Not big, new cotton will enter the market from September 10th to 20th. Henan Tongzhou cotton industry collective cotton acquisition processing processing processing, cotton textile and clothing production, cotton import and export trade and other businesses are one of them. Huang Hongyu said that the company also grows cotton in Xinjiang and has four blooming factories in the local area.

Data Map

Talking about the impact of the Xinjiang cotton ban in the United States, Huang Hongyu said that for cotton trading companies, the biggest risk is the change in market prices, and it is necessary to avoid risks through futures tools. He predicts that the impact of the ban is temporarily continued for a while, and Chinese companies are trying to open up markets outside the United States.

"As far as I know, some Chinese companies have been fined for the use of Xinjiang cotton in the United States." Zhu Genheng, Secretary -General of the Zhangjia Hong Kong Cotton Association, said in an interview with the Global Times reporter that the US bill was implemented in June. I have made some preparations at the beginning. The bill has a strong order to trace the textile products such as clothing in the United States. Enterprises need to provide contracts for cotton and procurement invoices such as yarn, fabrics, etc. In addition, the United States is trying to prevent companies from "washing cotton" through third parties. Therefore, textile products in Southeast Asian countries such as Vietnam will also be required to provide the same voucher.

At present, there is a voice in the market that the United States conducts genetic testing of cotton. Zhu Gensheng believes that the United States now can really do cotton gene test only two institutions, and there are only more than 20 staff in the world. "The United States imports a large number of textiles every year. They cannot do genetic testing on each order. Gene tests are still at the level of random inspection at a doubt," Zhu Genheng speculated that more than 99%of the US -American transmission products cannot do genetic testing for genetic testing. Essence

According to the data provided by the China Cotton Information Network to the Global Times, before the "evil law" of the United States takes effect, according to the export data statistics statistics statistics in 2021, it is expected that the amount of cotton in Xinjiang exported to the United States is about 590,000 to 640,000 tons. between. According to the data released by the National Bureau of Statistics of China, China's cotton output in 2021 was 5.731 million tons.

A Chinese textile manufacturer required to have an factory in Vietnam anonymous told the Global Times that some downstream customers were required to provide product origin documents. In this case, the manufacturer must undergo a long investigation. "In the final analysis, the US approach is to require sufficient certification documents," he said. It is difficult to distinguish cotton that enters Vietnam from different sources because they are mixed when transporting at sea.

Two reasons behind the difference

The Wall Street Journal reported recently that some US sanctions and imports of imports in the United States have "achieved results." It is reported that since the beginning of 2022, "an interesting phenomenon": Although the price of cotton in the world has risen, the price of Chinese cotton futures is far lower than that of New York cotton futures, which is at least the first time since 2016. China's cotton output accounts for about 1/4 of the global total output, of which about 90%are produced in Xinjiang. Most of the past 10 years, Xinjiang cotton is one of the most expensive cotton varieties in the world.

Enterprises and experts do not agree with the US media. Many parties have confirmed that decreased consumption under the epidemic is the main reason for the decline in cotton prices in Xinjiang. "This price spread is relatively outrageous," said Huang Hongyu. In October last year, the average cost of Xinjiang cotton acquisition was more than 24,000 yuan per ton, but the price fell all the way, and now it is about 16,000 yuan per ton. He said that for a long time, the price of Xinjiang cotton has been higher than imported cotton and other imported cotton prices. Taking October last year as an example, the price of Xinjiang cotton per ton is 3,000 yuan to 4,000 yuan higher than cotton. Foreign abroad is 5,000 yuan to 6000 yuan.

Huang Hongyu believes that there are two main reasons for the spread: one is that there are abundant domestic cotton supply, but consumption has declined; the other is that foreign cotton supply is relatively short, but consumption has risen. He said that the decline in Xinjiang cotton prices is mainly affected by the decline in domestic consumption under the epidemic. At the same time, the influence of US sanctions in Xinjiang cotton has become increasingly apparent. new clothes". But he also said, "As long as the domestic market is up, it can consume a lot of Xinjiang cotton." Zhu Gensheng also believes that the spread of Xinjiang cotton and imported cotton will gradually shrink in the future, "the inflection point has arrived."

In the international market, Xinjiang cotton cannot be absent

Zhu Genheng told the Global Times reporter that in the past, companies would not actively distinguish whether Xinjiang cotton or imported cotton, but only to distinguish what raw materials to use in accordance with the quality. After the implementation of the "Xinjiang Cotton Ban", the enterprise has been briefly adjusted after the implementation, and it has been re -deployed in the product structure. For example, it is used to produce products exported to Europe and the United States with imported cotton. Xinjiang cotton products are used in domestic consumption or exporting to Southeast Asia. China has imported yarns from Vietnam, India and even Thailand every year. At present, Chinese enterprises have also exported yarns, and the RMB exchange rate has recently declined, which is also beneficial to exports.

Zhang Wensheng, managing director of the new era of clothing (Bangladesh) Co., Ltd., said that the impact of the US ban should be temporary. Adjusting market allocation can offset these impact as soon as possible. In addition, Huang Hongyu said that Chinese companies are also exploring overseas markets outside the United States to go to ASEAN or countries along the “Belt and Road” to find new sales channels. People and experts in the industry believe that for the United States to continue to implement a ban, it can appropriately adjust the pattern of Chinese cotton production excessive concentration in Xinjiang production areas, and moderately restore the production of cotton traditional cotton in the Yellow River Basin and the Yangtze River Basin to diversify the risks. "The Xinjiang cotton ban in the United States is not so great on Chinese cotton. There are two or three years. If the company adapts to the new path, the impact will be smaller." Zhu Gensheng said that in the international market, Xinjiang cotton cannot be absent. The annual output of Xinjiang cotton is more than 5 million tons, the global cotton output is about 25 million tons, and Xinjiang cotton accounts for about 1/5 of the global cotton output. In addition, Xinjiang cotton is the world's high -quality cotton, and the mid -to -high -end products made are popular at home and abroad. If Xinjiang cotton is excluded, international cotton prices will rise to an unimaginable level. If the extreme situation occurs, the United States will inevitably taste bitter fruit.

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