China's Xinjiang region has planned a fund of 20 billion yuan to support its textile and clothing industry. The fund will be part of a package to increase employment and incomes and maintain social stability. The central government will contribute part of the fund and Xinjiang will raise the rest.
Apart from funding textile industrial parks and clothing factories, Xinjiang will subsidize local cotton and electricity in qualified textile industrial parks. The region will adopt strict environmental protection standards and control energy consumption during the process. The abundant energy resources in Xinjiang are expected to help enterprises integrate their industrial chain and tap new markets. More textile companies are expected to open production lines there and use more local cotton to reduce costs. Xinjiang will give special support to projects related to cotton textiles, printing, dyeing and finishing, hand-crafted carpets and knitting.
According to a 10-year textile development plan, 4,20,000 jobs will be created with an industrial output of about 86 billion yuan by 2018 and one million jobs and 212.5 billion yuan of output by 2023. The fund will favor southern areas of Xinjiang. Clothing and tapestry factories there will enjoy free or low rents for a designated period. In northwest China, Xinjiang now produces about 60 per cent of China’s raw cotton.