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Twenty-six enterprises and units have signed a contract in Urumqi, the capital of Northwest China's Xinjiang Uygur Autonomous Region, to set up a cotton industrial development company capitalised at $US72.4 million (600 million yuan).
China is granting export subsidies on cotton from Xinjiang Autonomous Region and offering foreign textile mills in China export tax rebates for using Xinjiang cotton, said the U.S. Agriculture Department.
China's largest cotton producing area in the northwest plans to get rid of "white pollution" caused by plastic sheets which local farmers use to protect crops, state media reported.