Central Asia Is Expected To Become A Hot Spot For China'S Textile Industry To Shift.

The past 5 years will be the key period for China's textile industry to lay the international market.

Not long ago, Duan Xiaoping, vice president of China Textile Industry Federation and President of China Chemical Fiber Industry Association, went to Tajikistan, Uzbekistan and other Central Asian countries.

He said that in the past 5 years, the speed of machine replacement in China's textile industry will continue to accelerate, and the level of mechanization will be greatly improved. Some enterprises that have not chosen machine substitutions will choose to "go out", and this decision will be completed in 3~5 years.

He hoped that China's textile industry and Central Asian countries' textile industry will seize the opportunity to promote exchanges and cooperation and promote win-win cooperation.

Located in southeastern Asia, Tajikistan is one of the first countries to respond to the "one belt and one road" initiative.

Uzbekistan is located in the hinterland of Central Asia, and is an important pivot country in the construction of "one belt and one road".

Xiaoping and Liu Yanwei, vice president of China Textile Construction Planning Institute, and Li Jie, Secretary General of China Cotton Textile Industry Association, found that Tajikistan textile industry has plenty of room for development.

The local cotton sown area is about 185 thousand hectares, with an annual output of 100 thousand tons of lint, of which only 20% is used for domestic production, and 80% of the spun yarns are exported to foreign countries.

Uzbekistan regards the textile industry as an important industry in the national economy and export earning.

At present, there are more than 3500 textile enterprises and more than 4700 garment enterprises in Uzbekistan's light textile industry, producing 700 thousand tons of cotton yarn, 1 billion 200 million tons of fabrics, 140 thousand and 700 tons of knitted fabrics, 2 billion 200 million garments, 132 million pairs of socks, and 1 billion 257 million dollars of textile and clothing (including cotton).

At present, China's textile industry has encountered some challenges and difficulties.

On the one hand, the aging of the population accelerates, the effective labor force is reduced, wages and other aspects of labor strength gradually disappear; on the other hand, Sino US trade friction has led to the loss of international orders, and some customers prefer to choose products from overseas processing plants of Chinese enterprises to avoid risks.

The investment of Chinese textile enterprises to Tajikistan, Uzbekistan and other Central Asian countries can effectively cope with the challenges.

After Xiaoping and his delegation visited Tajikistan and Uzbekistan, they found that Chinese textile enterprises could effectively avoid the challenge of the gradual disappearance of cost advantage on the one hand, to invest in Tajikistan and Uzbekistan.

In terms of energy, Tajikistan relies on abundant water resources to generate electricity. The electricity cost is equivalent to about 0.35 yuan / kWh. In terms of employment, per capita wages are relatively low, which is 800~1000 yuan (after tax).

Uzbekistan's energy price is also very favorable, electricity charges are about 0.25 yuan to 0.28 yuan / kWh, abundant labor resources and high quality, the average wage is about 1000 yuan / month.

On the other hand, Chinese textile enterprises can enjoy many preferential policies to invest in Tajikistan and Uzbekistan.

In terms of Taxation, Tajikistan stipulates that according to the size of investment, enterprises can enjoy different years and different intensity of tax reduction standards.

Enterprises that invest in Uzbekistan can enjoy preferential customs clearance. Every state in Uzbekistan has a free economic development zone. Enterprises can enjoy 7 years' tax exemption for investment in the park.

Xiaoping said that the visit to Tajikistan and Uzbekistan was fruitful. He was very optimistic about the prospect of Chinese textile enterprises investing in Central Asia.

Liu Yanwei said that the "going out" of China's textile enterprises is the result of their own development needs and external environment.

Uzbekistan has abundant cotton resources, attractive energy prices, high-quality and cost-effective labor force, and Uzbekistan's political stability is an important hub connecting Europe. These factors will make Uzbekistan one of the important choices for Chinese enterprises to invest.