Global Network quoted Reuters news that on the morning of July 14th, U.S. time, the U.S. Senate passed a bill to ban U.S. companies from importing products from China’s Xinjiang region. The reason is still the “forced labor” that U.S. politicians have always talked about.
Currently, the bill needs to be passed by the House of Representatives and finally submitted to the White House. It will take effect immediately after Biden signs it. Judging from the current US government’s attitude towards China, it will eventually be approved. It’s just a matter of time.
What impact will it have on Xinjiang?
According to the Xinjiang Uygur Autonomous Region’s 2020 National Economic and Social Development Statistical Bulletin, Xinjiang’s total foreign trade total for the year was 21.387 billion US dollars, of which the largest trading partner was Kazakhstan (75.826 billion yuan), followed by Russia (12.247 billion yuan) billion) and Kyrgyzstan (10.262 billion yuan). The import and export trade volume with the United States was only 6.681 billion yuan, accounting for 4.5%, and the value of goods exported to the United States was 4.528 billion yuan.
Data source: Urumqi Customs
From January to May this year, Xinjiang’s exports to the United States were only more than 90 million US dollars, a year-on-year decline 10%, while Xinjiang’s exports increased by more than 20% year-on-year during the same period. In addition, if this bill is finally approved, the value of goods exported to the United States this year will not exceed US$300 million, which will be a drop of more than 70% year-on-year.
However, from the perspective of trade dependence, with the exception of Kazakhstan, Xinjiang’s exports are relatively diversified, and the impact of US sanctions has been minimal.
From the perspective of export products, mechanical and electrical products and clothing are the main products. In 2020, exports were 34.996 billion yuan and 24.672 billion yuan respectively, accounting for more than 50%. Among them, mechanical and electrical products are mainly exported to countries along the “Belt and Road” and the European Union, accounting for more than 80% of total exports; clothing export markets are mainly in Kyrgyzstan, Kazakhstan and Russia, accounting for more than 90% of total exports.
Data source: Urumqi Customs</p
