China is planning to put in billions of dollars in textile factories in Xinjiang to create around 1 million jobs by 2023. The Xinjiang Production and Construction Corps which produces 30 per cent of China’s cotton, has been keeping its prices at least US $ 80 per tonne higher than other ginners, limiting sales. Because of this, China has agreed for subsidies to help cushion the impact of ending stockpiling, but the total amount is unclear and with the local cotton price plunging any threat to the industry could be a fresh source of competition for jobs.
