Analysis Of China's Accession To The Global Cotton Subsidy

Here world Clothing and shoes Xiaobian of the network is to tell you that China's entry into the Global Cotton Subsidy family is a blessing or a curse.

China's Cotton Subsidy Policy has been promulgated, the mainland subsidy scope is 9 provinces such as Shandong and Hubei, the subsidy standard in 2014 is 2000 yuan / ton, the subsidy standard in the following year is based on 60% of the Xinjiang subsidy amount, the upper limit is not more than 2000 yuan / ton, the subsidy standard of the following year has already come out with the subsidy standard of Xinjiang, and the cotton target price is 19 thousand and 800 yuan per ton, which is lower than this price and is subsidized by the government.

The average selling price of standard cotton in China is 14 thousand and 800 yuan / ton, and the import cost of cotton is equivalent to RMB 11 thousand and 900 yuan / ton, while foreign price is lower than domestic price 2909 yuan / ton. The difference between domestic and foreign cotton price has narrowed compared with 7000 yuan / ton at the largest time, but it is still very large.

　　 cotton The reasons for the subsidy policy are:

There are both international and domestic reasons for China's subsidy to cotton.

Internationally, subsidies for cotton and other agricultural products are a global phenomenon. The US government has the largest subsidy for cotton, and almost no textile industry in the country, so basically all exports at low prices, which has lowered global cotton prices, has become a decisive factor in cotton prices.

On the other hand, China is the largest cotton demand country in the world. The government hopes that it can supply most of the demand and not rely entirely on imports. This is a strategic need.

Global cotton subsidies:

Why is the cotton industry in the United States already very efficient and highly modern?

This is because the competitive advantage of agriculture is lost. If there is no subsidy, the income of agricultural workers is not enough to attract them to continue to stay in agriculture. If we want to keep the development of agriculture, we will require the income level of agricultural operators to be equal to other industries in the society.

Agricultural subsidies speak plainly about stabilizing employment. In fact, the United States has a lot of subsidies to agriculture, such as soybeans, wheat, corn and other products.

Many developing countries also maintain cotton cultivation because labor prices are low, so even if the income is not high, they still have a comparative advantage in their own countries.

Other countries, such as Brazil and Pakistan, also have subsidies, but developed countries have more subsidies than developing countries.

Of course, there is this situation in China. The income of agricultural workers is getting lower and lower than that of other industries, so it relies on subsidies to maintain the industry.

The negative effects of cotton subsidies:

In the global market, subsidies cause the disorder of price signals. First of all, the original withdrawal from agricultural producers continued to stay in this field, resulting in more people in agriculture. Originally, these people should go to other industries, thus increasing the income of agricultural labourers.

In addition, this also makes the global division of labor and cooperation have not been completed. The cotton industry has not transferred to low production costs, and has reduced the efficiency of resource allocation.

Chinese government subsidy stick The high cost of maintaining the raw material cost of the downstream cotton textile industry will lead to many enterprises trying to build factories overseas.