Vigilance Against The Increasing Conspiracy Of US Intervention In Xinjiang Affairs

Since the trump period, the frequency and intensity of American intervention in Xinjiang affairs have been increasing. From 2017 to 2020, the U.S. Congress has put forward 15 Xinjiang related bills, more than the total number of Xinjiang related bills since 2000.

In June 2020, trump signed the so-called "Uyghur human rights policy act 2020", under the guise of "human rights", mainly aimed at Xinjiang stability maintenance workers and related production enterprises.

The "Uyghur forced labor Prevention Act" signed by Biden in December 2021 directly extends the scope of sanctions to all commodities produced in Xinjiang. It will have a negative impact on China's cotton, tomato, photovoltaic and other products as well as the upstream and downstream industrial chain. The bill came into effect on June 21, and skykey became the first victim of the bill because its manufacturers employed Uighur workers.

With the support of the government, Xinjiang has gradually become the main cotton planting area in China because of its vast territory, abundant sunshine, flat terrain and favorable mechanical operation. In 2021, the sown area of cotton in Xinjiang is 37.5926 million mu, accounting for 82.76% of the national planting area; The cotton output in Xinjiang reached 5.219 million tons, accounting for 89.5% of the total cotton production in China.

Therefore, most of China's cotton textile products can not wrap around Xinjiang cotton. According to the statistics of the General Administration of customs, in 2021, the total export volume of China's textiles and clothing will reach 315.5 billion US dollars, including 56.35 billion US dollars exported to the United States, accounting for 18%. Even with the signing of the Uyghur forced labor Prevention Act, China's textile and garment exports totaled US $125.067 billion in the first five months of 2022, an increase of 11.18% year-on-year. In the first four months of 2022, the export volume of textile and clothing to the United States is 16.28 billion US dollars, accounting for 17%. However, from the perspective of US textile and clothing imports, China's share has been declining continuously. The import amount decreased from US $2.9 billion in January to US $2.27 billion in April, accounting for 21% from 29%.

On the whole, although China's textile and clothing exports are in good condition so far, its market share in the United States is obviously occupied by Southeast Asian countries, which has caused the pessimistic mood of foreign trade enterprises for the second half of the year.

And the recent sharp decline in cotton is mainly affected by the Federal Reserve's radical interest rate hike. CPI in the United States grew 8.5% year on year in May. The increasing inflationary pressure has caused the market to worry about the economic recession. Recently, bulk commodities have been affected, and domestic and foreign cotton futures prices have also fallen.

In addition to the macro level, weak domestic downstream consumption is another important factor. According to the statistics of the National Bureau of statistics, in May 2022, the retail sales of clothing, shoes, hats, needles and textiles were 95.8 billion yuan, down 16.2% year-on-year; The total retail sales volume was RMB 9.35-0.1 billion, with a year-on-year decrease of RMB 9.3-1.0 billion.

At present, poor demand, high inventory and insufficient profit are the major difficulties faced by downstream enterprises. Before September is the traditional consumption off-season, cotton is expected to run in a weak position.