Chinese Government Investment to Create 1 Million Jobs in Textiles

Government investment in the Xinjiang Uygur Autonomous Region in northwestern China may soon boost jobs in the region. According to People Daily, the national and local governments plan to collectively contribute about $3.2 billion to grow employment in the clothing and textile sector. In addition to directly funding some textile factories, the money will go to subsidize cotton and electricity for selected facilities.

The plan calls for 420,000 new jobs over the next four years and 1 million by 2023. To help employers meet these goals, the government’s fund will provide free or reduced rent for textile factories in the region. Though Xinjiang produces 60 per cent of the country’s cotton, it houses relatively few textile factories, which are mainly concentrated on China’s eastern coast. The cost of transporting cotton across the country has reportedly made operating more difficult for Xinjiang’s cotton farmers.

China is currently experiencing employment growth throughout the country. The Associated Press reported that more than 7 million jobs have been created in China since the beginning of 2014. Economic growth in the country currently matches the government’s target figure of 7.5 per cent for the year.