The “Belt & Road” initiative has been proposed for over a decade. Central Asia, as the starting point of China’s “Belt & Road” initiative, holds significant importance. In recent years, with China and Central Asian countries making steady progress in cooperation, the seamless connection exemplified by the China-Europe Railway Express continues to enhance textile industry collaboration between China and Central Asian countries.

The total amount of textile and clothing trade between China and Central Asian countries has reached a new high

This year, the foreign trade performance of Central Asian countries stands out. The textile industry, a crucial sector for economic and trade cooperation between China and Central Asian countries, has reached a new record high in total foreign trade. From January to May, the foreign trade of textiles and apparel between China and Central Asian countries totaled US$ 7.16 billion, accounting for about 20% of China’s total trade with the five countries in Central Asia, surging by 19.3% year-on-year, maintain a higher growth rate in recent years. Among them, China’s textile and apparel exports to the five Central Asian countries from January to May amounted to US$ 6.97 billion, showing an 18.3% increase compared to the previous year. Textile and apparel imports totaled US$ 190 million, marking a significant 74.8% increase year-on-year.

Figure 1: Total Foreign Trade in Textiles and Garments Between China and the Five Central Asian Countries

Apparel exports maintain a high level of growth, while that of textiles has declined

In the first five months of this year, China exported a total of US$ 1.53 billion of textiles to Central Asian countries, seeing a year-on-year decrease of 13.1%. Among them, the exports of textile manufactured goods increased by 22.2%; that of yarn and fabrics slumped by 50.8% and 21% respectively year-on-year. During the same period, China exported US$ 5.44 billion worth of clothing and clothing accessories to the five Central Asian countries, showing a significant increase of 31.6% compared to the previous year. The rapid growth in exports indicates that consumer demand in the Central Asian market is generally strong.

Figure 2: China’s Exports of Textiles and Apparel to Five Central Asian Countries in January to May 2024

From the perspective of main export products to Central Asia, more than 80% of the top-ranking export categories are apparel. The export value of cotton clothing increased significantly, with cotton T-shirts surging by nearly 400% year-on-year. Chemical fiber underwear and dresses are also experiencing faster year-on-year growth.

Kazakhstan and Kyrgyzstan are becoming important areas for China's textile foreign trade growth

Kazakhstan and Kyrgyzstan are significant markets for textile and apparel exports for China in Central Asia and globally. These two countries have become important emerging markets for China due to their rapid export growth rate and strong overall growth performance.

Figure 3: China’s Textile and Garment Exports to Five Central Asian countries from January to May 2022 to 2024

From January to May this year, China exported US$ 3.65 billion of textiles and garments to Kazakhstan, surging by nearly 70% year-on-year. Kazakhstan is the fifth-largest single-country export destination of China’s textile industry globally and the largest export market for China’s textile industry in Central Asia, representing approximately 50% of China’s total textile exports to Central Asia. Cotton knitted T-shirts, women’s coats, and corsets made of chemical fibers are the main products exported from China to Kazakhstan.

China’s textile and apparel exports to Kyrgyzstan amounted to US$ 2.62 billion, falling by 10.6% year-on-year due to the high base in the same period last year. But the scale of exports is still maintained at a historically high level compared with the same period in previous years. From the perspective of main export products, knitted garments and clothing accessories maintain a high growth rate. Currently, Kyrgyzstan is the ninth-largest export market of China’s textile industry worldwide and Central Asia’s second-largest export market.

During the same period, China’s textiles and apparel exports to Uzbekistan amounted to US$ 370 million, seeing a year-on-year decrease of 9.3%. Exports of textiles and clothing to Tajikistan amounted to US$ 290 million and to Turkmenistan amounted to US$ 30 million, showing a decrease of 15.5% and 31.8% respectively compared to the previous year.

China’s Xinjiang Uygur Autonomous Region has become a key link between China and Central Asia’s textile industry

With the deepening of Belt and Road cooperation, Xinjiang develops itself into the gateway of China’s westward opening up with its geographical advantages. Xinjiang and Central Asia are close neighbors connected by shared mountains and rivers. Trade cooperation between Xinjiang and the five countries of Central Asia is rapidly progressing under the “Belt and Road” initiative.

From January to May, the foreign trade between Xinjiang and five Central Asian countries totaled over US$ 17 billion, showing a 21.2% increase compared to the previous year. This trade accounted for about 66% of Xinjiang’s total foreign trade. Central Asian countries have become the largest trade partner of China’s Xinjiang Uygur Autonomous Region.

Textiles and apparel play a crucial role in supporting the high-quality development of trade between Xinjiang and Central Asian countries. In the first five months, Xinjiang’s textile and apparel exports to Central Asian countries totaled US$ 6.05 billion, accounting for more than 40% of Xinjiang’s total exports to Central Asia.

Meanwhile, Xinjiang Uygur Autonomous Region ranks first in the amount of textile and apparel exports to Central Asia among all provinces of China. Textile and clothing exports from Xinjiang made up approximately 87% of the total textile industry exports from China to Central Asia in the first five months. Its share increases steadily year-on-year.

Figure 4: Xinjiang’s Textile and Apparel Exports to Five Central Asian Countries and its share in China’s exports to Central Asia from 2019 to Jan.- May 2024

Cotton textiles and clothing are the main products exported from Xinjiang to five Central Asian countries. In the first five months, Xinjiang’s exports of cotton textiles and clothing to five Central Asian countries accounted for more than 50% of Xinjiang’s total textiles and clothing exports to Central Asia. Xinjiang is an important cotton resource security base for China’s textile industry. Cotton output accounted for over 90% of China’s total cotton production in 2023. And the output has been stable for five consecutive years at more than 5 million tons. Thanks to an ample and high-quality cotton supply, an advanced cotton textile processing industry, and Xinjiang’s strategic location as a gateway to China’s westward opening up, the region has seen a consistent increase in cotton textile and apparel exports to Central Asia in recent years.

Related Reading: China’s Textile and Apparel Export in May Resumed

Source: CHINA TEXTILE LEADER Express