China’s cotton heartland is turning scale into strategy—utilizing energy, chemicals, and logistics to transition from raw fibre to finished goods.
Northwest China’s Xinjiang Uygur Autonomous Region is accelerating a restructuring of its textile and apparel industry, aiming to capture more value from its dominant cotton base by deepening processing, integrating petrochemicals and expanding export logistics.
At an industry conference in Alaer, regional officials outlined a push to raise Xinjiang’s local cotton processing rate from 42% to 60% within five years—equivalent to about four million tonnes annually. The strategy links cotton textiles with polyester and viscose production, leveraging Xinjiang’s energy advantages and industrial parks.
The results are already visible. Xinjiang now ranks second nationally in cotton yarn output, fourth in viscose and fifth in cotton fabric. Woven filament fabric output has surged from 1.39 million metres in 2020 to 1.41 billion metres in 2024, reaching 1.63 billion metres in the first 11 months of this year. From January to November, the sector’s output value rose 19.6% year-on-year to 97.4 billion yuan, while exports via Xinjiang’s ports doubled between 2020 and 2024.
Employment effects are significant. Between 2021 and 2024, the sector employs about 236,000 people, with more than 80% in southern Xinjiang. Over 32,000 new jobs were created in the first nine months of this year.
The policy focus is shifting to resilience and reach. Officials highlighted closer cooperation with Central Asian markets, standards alignment, and greater use of China–Europe rail freight. The trial launch of “Xinjiang Textile City” in Alaer—combining fabric trading, machinery, smart warehousing and digital park management—signals an ambition to build a full-chain ecosystem.
