Kyrgyzstan has a strong trade relationship with China. Sewing products made in Kyrgyzstan are of high quality and affordably priced. About 70 per cent of the raw materials, fabrics, and accessories for Kyrgyz sewing industry are imported from China. Since China's garment production is no longer seen as profitable, investors from China see Kyrgyzstan as a strategic area for new investments.
Since the beginning of 2014, trade between Kyrgyzstan and China has grown 8.5 per cent compared to the same period of 2013. China has to import textiles, as its own resources are insufficient to meet the demand. Due to the rising tariffs for water and electricity, China has to shift its production to the countries of Southeast Asia. As Kyrgyzstan neighbors China, it intends to export its goods through Kyrgyzstan to the CIS and other countries.
Kyrgyzstan annually produces about 10,000 tons of wool, but only about 30 per cent of the total volume is thin and semi-light wool. The remaining 70 per cent is rough and semi-coarse wool, and it is not in demand. Therefore, Kyrgyzstan is very interested in attracting Chinese technology to refine wool processing.
Export of apparel products is one of the most important sectors of the Kyrgyz economy. Kyrgyz garment producers believe that entry into the Customs Union countries including Kazakhstan, Russia and Belarus will be profitable for them.
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