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Ji Siqi

After a sweeping US ban on products from China’s Xinjiang region came into effect in June, two pillars of local agriculture – known as “white and red” – have experienced very different fates.
Xinjiang’s tomato and cotton industries each play a crucial role in the global supply chain; the region produces a quarter of the world’s tomatoes and a fifth of its cotton. But after both were designated by the US as “high-risk” under the Uygur Forced Labour Prevention Act, cotton has suffered the most.
While cotton grown in the region is mostly consumed locally or sold to other provinces to be made into garments and textiles, most tomato products from Xinjiang are exported directly, in theory making them more vulnerable to external demand.
But it has been the price of Xinjiang cotton that has tumbled, while the tomato industry has remained largely intact.
Why has the US ban had minimal impact on Xinjiang tomatoes?
The short answer is the US does not import tomato products from Xinjiang.
The US is one of the world’s largest growers of tomatoes, particularly in the state of California. Under the North American Free Trade Agreement, the country also imports large quantities of tomatoes from Mexico and Canada.
Xinjiang tomato products were exported to more than 80 countries in the first seven months of 2022, stretching across Europe, Asia, Africa and Oceania.
Xinjiang exports to US hit two-year high despite forced labour law
Italy has been the top importer, absorbing almost 20 per cent of the autonomous region’s exports from January to July, according to China customs data.
It was followed by Russia, which accounted for 16 per cent of total exports, then Ghana and the Philippines, each buying about 6 per cent of the total.
Big barrels of tomato paste, each typically weighing more than 5kg (11lbs), accounted for more than 96 per cent of tomato exports in the first seven months of the year, customs figures showed.
How has Xinjiang become a major global tomato producer?
China is the world’s top tomato producer, contributing 35 per cent of global production in 2020, according to the United Nations’ Food and Agriculture Organization.
Xinjiang has emerged as China’s top producer due to numerous geographic attributes. It stretches across the 34-49 north latitude that is perfect for growing tomatoes, it has ample sunshine and a large temperature range between day and night.
It is estimated the region grows 80 per cent of China’s tomatoes.
Xinjiang’s tomato farming and processing industry began in 1978 with the help of Italian businessmen. Since then most output has been for export.
In the first seven months of this year, Xinjiang exported more than 290,000 tonnes of tomato paste, worth US$256 million, accounting for 53.7 per cent of the country’s tomato paste exports in the same period.


How will the industry change in response to rising geopolitical tensions?
Like cotton, the tomato industry in Xinjiang has been tarnished with forced labour allegations, which Beijing has vehemently denied.
Even though the US is not a major export destination – and the “forced labour” bill has had limited impact on the industry overall – uncertainties remain. The European Commission is also set to propose a ban on the sale of products involving forced labour.
Leading tomato processing companies in Xinjiang have acknowledged the risks and proposed tackling them by increasing sales to the domestic market.
The state-owned COFCO Sugar, Asia’s largest tomato processing company and No 2 in the world, said it had expanded in the domestic market to avoid export risks, according to the company’s 2021 annual report.
‘Barely a boost’: China to buy Xinjiang cotton as US ban hits home for mills
Xinjiang Guannong Fruit, another leading processing company, said that as Xinjiang mainly produces large buckets of tomato paste, its product is not diversified and highly dependent on the international market
“The global economic situation and trade policies would have an impact on the export and sales of tomato paste products,” it said in its annual report.
“In the 2021 production season, the tomato industry encountered many challenges in terms of raw material supply, price, and foreign trade transport costs.
“These problems may continue to exist in 2022, affecting the survival and development of tomato production enterprises to varying degrees.”


Why has it been a different story for Xinjiang cotton?
In 2021, Xinjiang’s annual cotton output was 5.27 million tonnes, accounting for 91 per cent of the nation’s total production, according to the China Cotton Association. Last year, 67 per cent of cotton consumed across the country was from Xinjiang.
But this year Xinjiang cotton has been increasingly shunned by downstream manufacturers, especially those that focus on exports who are wary of running afoul of the US ban.
In recent years, countries in South and Southeast Asia have also been steadily increasing their market share in terms of textile and garment exports to the US. However, China – as the world’s largest textile producer and exporter – is still the No 1 American supplier.


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Xinjiang

Why has the US ban on Xinjiang’s tomato exports had such limited effect?

China is the world’s top tomato producer and Xinjiang is the hub of domestic production thanks to numerous geographic and climate advantages. Photo: Xinhua

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China’s manufacturers cut jobs for the fifth straight month to reduce costs in August. Photo: AFP

China’s manufacturers cut jobs for the fifth straight month to reduce costs in August. Photo: Xinhua

Labor recruitment agencies, stores and restaurants are closing in Dongguan as well. Photo: He Huifeng

Economy

Tomato products from Xinjiang were designated by Washington as ‘high-risk’ under the Uygur Forced Labour Prevention Act
But the industry has proved remarkably resilient because it does not rely on American imports, and exports to about 80 countries


Tomato products from Xinjiang were designated by the US as ‘high-risk’ under the Uygur Forced Labour Prevention Act, but the industry has proved remarkably resilient, mainly because it does not rely on the American market.


China economy

US-China relations

Xinjiang cotton

China-EU relations

Human rights in China

China exports

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Explainer

Explainer | Why has the US ban on Xinjiang’s tomato exports had such limited effect?

Tomato products from Xinjiang were designated by Washington as ‘high-risk’ under the Uygur Forced Labour Prevention Act But the industry has proved remarkably resilient because it does not rely on American imports, and exports to about 80 countries

Why has the US ban had minimal impact on Xinjiang tomatoes?

Tomato products from Xinjiang were designated by Washington as ‘high-risk’ under the Uygur Forced Labour Prevention Act

But the industry has proved remarkably resilient because it does not rely on American imports, and exports to about 80 countries