Starting form Jan 1, 2011, Uzbekistan cancelled 20% export tax rebate and the 15% discounts to cotton purchasing was also most cancelled. These made some Chinese cotton textile enterprises to stop investing or withdraw their investment in Uzbekistan.
Shandong Yuncheng Hengshi Textile Company once planned to procure a cotton textile mill in Uzbekistan and more than 1.3 million US dollar has been invested. They said the Uzbekistan cotton was even better than Xinjiang cotton as the weather was dry. Meanwhile, labor cost was also low. Plus the export tax rebate policy and the discounts provided for purchasing cotton, they intended to invest there. However, Uzbekistan suddenly cancelled export tax rebate and they did not know how to deal with it, except waiting.