China’s cashmere industry is gaining international recognition by combining high-quality production with sustainable practices. Furthermore, the cashmere sector in Inner Mongolia is setting global standards while creating economic opportunities both domestically and abroad.
As autumn arrives, demand for cashmere sweaters rises across the Northern Hemisphere. On a ranch in Erdos City, Inner Mongolia, white Albas cashmere goats graze across solar-powered grasslands. Consequently, their fleece is highly valued in the cashmere industry for softness, fineness, color, and warmth.
Moreover, Inner Mongolia has developed a complete industrial chain for cashmere production, covering breeding, processing, and sales. In 2024, the regional cashmere industry output exceeded 18 billion yuan, approximately 2.5 billion U.S. dollars. Additionally, the cashmere sector emphasizes harmony with nature and environmental protection.
For instance, the Erdos Group operates a solar-powered ranch that generates surplus electricity for the grid. At the same time, the company uses energy-saving dyeing technology that breaks down pollutants into harmless byproducts, cutting water use for dark colors by half. As a result, carbon emissions from producing a 200-gram cashmere sweater fell by 11.43 percent, reflecting sustainable practices in the cashmere industry.
To protect grasslands, local authorities have balanced goat herd sizes with pasture capacity. In Alxa League, goat numbers dropped from 1.48 million to around 450,000, while raw cashmere yield per goat increased from 300 grams to 500 grams. Thus, Zhu Lixian, a local husbandry expert, said raising fewer animals with better breeding improved both ecology and the cashmere sector’s quality.
Local herders are benefiting from this quality-focused approach. For example, Buyinchogetu produced 178 kilograms of cashmere this year, with 72 kilograms under 14 microns. Under the 2024 subsidy program, this portion earned him an extra 36,000 yuan, which is three times the price of ordinary cashmere. This demonstrates how the cashmere industry rewards high-quality production.
In addition, technological advancements support the cashmere industry’s global influence. Companies like Dongli Cashmere and King Deer Group implement intelligent sorting systems, somatic cell nuclear transfer, and gene-editing to enhance fiber quality. Furthermore, Erdos Group helped establish six international cashmere standards, reducing trade disputes and improving consistency across the cashmere sector.
Tourism also contributes to the cashmere industry’s local economic impact. In Alxa League, herder Saihan offers ranch experience tours where visitors learn herding, shearing, and weaving cashmere. During peak season, the ranch hosts over 100 visitors daily, generating tourism income of 500,000 yuan, which supplements his family’s total annual earnings of 800,000 yuan.
Meanwhile, Chinese cashmere companies are expanding overseas through Belt and Road Initiative partnerships. Factories in Madagascar and Cambodia employ more than 10,000 locals, creating jobs and stimulating regional economies. These efforts strengthen the global cashmere industry and increase international recognition.
Overall, the cashmere industry in China is transitioning from high output to high quality and sustainability. Consequently, the cashmere sector provides warmth to consumers, sets global standards, and generates broad economic and social benefits.
