Initiate cotton anti-dumping investigation against US, experts
30 Nov '06
2 min read
The large quantity of imported cotton is changing the development pattern of China's cotton industry: In the first half of this year, cotton imports amounted to 2.74 million tons, nearly half of China's total cotton output this year.
At present, imported cotton has laid down a basic position in China's cotton market.
Since last year, the US cotton has constantly grabbed China's cotton market share by relying on its price of 1,700 yuan per ton below China's local growth.
Due to the time limitation and quantitative restriction of import cotton quotas, Chinese textile manufacturers could not purchase cotton from international market in time, the voices of textile enterprises to seek free cotton imports are rising.
Just six months ago, many textile enterprises would rather cut off production than to take in domestic cotton. They waited with great patience for the state to issue import cotton quotas, in resulting large domestic cotton stocks in the first half of this year.
If the domestic textile industry continues to extend their reliance on foreign cotton, China's cotton industry will lose its security and strategic infrastructure protection in the country.
Some researchers from Shanghai WTO Consultant Advisory Center believe that heavily subsidized US cotton rushing into China in large quantities has, in fact, harmed the interests of domestic cotton growers and cotton traders.
China should proceed to cotton trade relief measures as early as possible, such as anti-dumping investigations.
marketing@alchempro.com
