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Edith Lin

Hong Kong businesses can leverage Xinjiang’s connectivity with Central Asia to expand into new markets while the city’s financial, trade and professional services can help businesses in the region enter Southeast Asia, according to political analysts.
But an economist and a textile industry veteran have warned of potential risks for Hong Kong businesses building ties with Xinjiang in northwestern China.
Western countries have imposed sanctions on officials and entities tied to the Xinjiang Uygur autonomous region over alleged suppression of ethnic minority members – accusations Beijing has repeatedly denied.
Chief Executive John Lee Ka-chiu led his largest delegation to date to Kazakhstan and Uzbekistan in May and June, aiming to explore new markets amid geopolitical uncertainties and help mainland Chinese companies go global.
Li Lifan, a research fellow at the Shanghai Academy of Social Sciences, said Xinjiang could play a role in fostering collaboration between Hong Kong and Central Asia.
Li noted that Xinjiang had two major railway hubs in Alashankou and Khorgos at its border with Kazakhstan, a country through which most freight trains running between China and Europe passed.
“Xinjiang is essential to trade between Hong Kong and Central Asia,” he said, adding that the region had a strong appetite for advanced and innovative electronic products.
“For example, products can be designed in Hong Kong, manufactured in Xinjiang and exported to Central Asia.”
Li added that Hong Kong commercial associations could consider setting up offices in key Xinjiang border cities, such as Khorgos, to help foster connections for their counterparts in Central Asia.
Ethnic Kazakhs in prefectures close to Kazakhstan could help Hong Kong firms communicate with stakeholders, he suggested.
Additionally, Hong Kong could assist Central Asian and Xinjiang businesses in expanding into new markets as they currently relied on the port of Lianyungang in eastern Jiangsu province to export to Japan and South Korea, he said.
“Hong Kong serves as a good gateway for Xinjiang and Central Asia to venture into the Southeast Asian market,” Li said.
The analyst added that companies in Xinjiang and Central Asia could source capital from Hong Kong and use the city’s mediation and legal services in case of any trade disputes.

Lau Siu-kai, a consultant for the semi-official Chinese Association of Hong Kong and Macau Studies think tank, said Hong Kong could serve as a springboard for Xinjiang businesses seeking new and friendly markets outside Western countries.
Lau noted that Xinjiang had one of the fastest-growing economies in China and served as a hub connecting the rest of the country with Central Asia and Europe under the Belt and Road Initiative, while Hong Kong was tasked with helping mainland businesses go global.
“Most importantly, both places should leverage their strategic positions to cooperate and facilitate development,” he said.
Hong Kong could take advantage of Xinjiang’s location and its cross-border infrastructure as it looked to build ties with Central Asia, Lau added.
Xinjiang has for years been a source of strain between Beijing and Washington.
Western countries have imposed sanctions on China over its alleged use of forced labour and detentions in the region, a claim that Beijing has strongly denied.

The Uygur Forced Labour Prevention Act that came into force in 2022 blocks the import of all goods sourced wholly or partly from Xinjiang unless the companies involved can prove their supply chains are free of coercive practices.
Esquel Group, a Hong Kong-based textile and apparel company, and two of its mainland-based subsidiaries were blacklisted over their cotton sources.
A Hong Kong textile industry veteran, who spoke on condition of anonymity, said the chances were slim for other Hong Kong companies to expand into the region due to costs and sanction-related concerns.
The insider said Esquel’s presence on the mainland was unique as it had expanded in Xinjiang since the 1990s and built its supply chain.
The representative said that the appetite for Xinjiang cotton was also low, except among mainland brands, as global apparel companies could avoid trouble by using cotton from Pakistan and India at competitive prices.

Gary Ng, senior economist at Natixis Corporate and Investment Bank, said cotton and food products from Xinjiang had been heavily politicised, and companies would try to minimise their risks of being targeted.
Instead of sourcing materials from the region, the city could help re-export Xinjiang products to overseas markets where there was a demand and promote the area’s tourism, he said.
Hong Kong flag carrier Cathay Pacific Airways last year launched direct passenger flights to Urumqi, the region’s capital.
The South China Morning Post recently visited Xinjiang on a media trip, where the local cotton industry sought to clear its name.
Zhao Xin, who owns 113 hectares (279 acres) of cotton fields in the city of Shihezi in Xinjiang, said in response to accusations of forced labour that many procedures had already been automated and mechanised.
He pointed to the general application of drip irrigation technology, which involves installing small hosepipes underneath a thin plastic sheet covering the soil to irrigate crops while preventing evaporation and retaining heat.

Zhao added that farmers relied on satellites to increase precision when sowing seeds and operating harvesting machines.
“It has significantly saved manpower and increased productivity,” he said.
“Forced labour does not exist. All modernised efforts have removed the need for manpower. How can we exploit them? It has been mechanised.”
A manager at a factory of Shihezi Baifeng Cotton Industry Company, which processes cotton into yarn, also said automation had cut employee headcount from 900 to 250, with workers focusing on monitoring and maintaining the machines.
The factory is located in the 180-hectare Shihezi Textile Industrial Park, which is home to 17 businesses less than two years after its opening.
With an occupancy rate of more than 60 per cent, the park also brings in waterless dyeing technology from Esquel.
Liu Zhen, general manager of Shihezi Jingyi Technology, a company formed by Esquel and a Xinjiang business, said the technology helped tackle a bottleneck in the industry, as textile dyeing caused pollution and water was scarce in the region.
“We hope to introduce green and sustainable technologies to promote positive development in the industry,” he said.


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Zhao Xin owns of a 113-hectare cotton field in Shihezi, Xinjiang. Photo: Edith Lin

Cotton is produced at a factory in Shihezi, Xinjiang. Photo: Edith Lin

Processing machines at a cotton factory in Shihezi, Xinjiang. Photo: Edith Lin

Drip irrigation technology, involving installing small hosepipes underneath a thin plastic sheet covering the soil, is applied at a cotton field in Xinjiang. Photo: Edith Lin

Zhao Xin, owner of a 113-hectare cotton field in Shihezi, says most of the procedures at his cotton plantation are automated. Photo: Edith Lin

A cotton field operated by the Xinjiang Production and Construction Corps. Photo: Edith Lin

A Shihezi Jingyi Technology facility in Xinjiang. Photo: Edith Lin

Xinjiang growing as tourist destination for Hongkongers amid travel sector push

A Xinjiang guide explains the region’s history of cotton production during a factory tour. Photo: Edith Lin

Hong Kong student Angel Lau at a cotton field in Xinjiang. Photo: Angel Lau

Zhao Xin, president of a travel association in Shihezi, at a former cotton factory that has been turned into a “red tourism” attraction. Photo: Edith Lin

Lei Yiming, co-founder of Silk Road Date, a Xinjiang tour company, holds a bag of handcrafted leather decorations made by nomads and farmers. Photo: Edith Lin

Mainland Chinese firms on Hong Kong-led Central Asia trip eye city listing: John Lee

Hong Kong’s leader John Lee (centre, pointing) views a scale model at Nazarbayev University in Astana, Kazakhstan, in early June. Photo: Handout

City leader John Lee says a Hong Kong task force has so far helped more than 200 mainland firms set up or expand their businesses in the city. Photo: Handout

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Xinjiang’s transport links and proximity to Central Asia can help Hong Kong expand in region, but Western sanctions create hurdles, analysts say


Xinjiang’s transport links and proximity to Central Asia can help Hong Kong expand in region, but Western sanctions create hurdles, analysts say.


How Xinjiang offers Hong Kong a bridge to Central Asia — and what the risks are

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Xinjiang’s transport links and proximity to Central Asia can help Hong Kong expand in region, but Western sanctions create hurdles, analysts say

Xinjiang’s transport links and proximity to Central Asia can help Hong Kong expand in region, but Western sanctions create hurdles, analysts say