Import Of Cotton And Cotton Yarn At Present Is Reduced.

Although the amount of imported cotton yarn is preempting the Chinese market, we also need to see that China's cotton textile industry is still difficult to be replaced by Southeast Asian countries with its superior downstream production chain and mature technology, especially in the weaving industry with high technology content. This situation is particularly evident in Vietnam. Although Vietnam is a large producer of clothing, grey cloth is a major bottleneck in the country. It needs to import a large amount of grey cloth from China to meet the downstream needs every year.

In addition, with the gradual production of textile factories in Xinjiang, the price of Xinjiang cotton yarn is also very competitive for imported yarn because of various subsidies provided by the government.

Moreover, with the tax reform and power reform in Central China in 2016, the disadvantages of Chinese textile enterprises may be gradually reduced.

In 2015, the NDRC stated that in addition to undertaking the quota of 894 thousand tons of cotton imported from WTO, the import quota was no longer issued. Therefore, the cotton import volume dropped sharply in the past year.

Especially after August, the quota of enterprises is very small, so the import volume of cotton in the latter few months has plummeted.

Even cotton entering the bonded area has been pferred to other Southeast Asian countries because of the absence of quota clearance.

According to the statistics of the Chinese customs, the total import of cotton was 1 million 285 thousand tons in the first 11 months of 2015, a decrease of 44.8% compared with the same period last year. Since 2015/16, China has imported 178 thousand tons of cotton, a decrease of 40.2% compared to the same period last year.

The national development and Reform Commission said it will continue to consume domestic cotton stocks in 2016, and the quotas for imported cotton will be issued to those textile enterprises that really need to avoid quotas in the market.

Therefore, it is estimated that the imported cotton shape will be the same as that in 2015 in 2016. And with the reduction of the difference between inside and outside cotton prices and the structural shortage of cotton this year, the imported cotton will be dominated by high-grade cotton, Australian cotton and Brazil cotton in 2016.

Imports are expected to decrease further.

In 2015, due to the global economic weakness, insufficient demand in the international market, further weakening of China's traditional competitive advantage and intensified trade frictions, the total export volume in the first 11 months of the year dropped by 2.2%.

As a traditional Chinese tradition

The total exports of textiles and clothing in the first 11 months of the year were 257 billion 26 million US dollars, down 5.79% from the same period last year.

Among them, the total export of textiles was 99 billion 760 million US dollars, down 2.6% compared with the same period last year, and the total export volume of clothing was 157 billion 267 million US dollars, down 7.71% compared with the same period last year.

The export situation is not good, the order volume falls, on the one hand is affected by the global economy weak, the demand is weak, especially the European Union and Japan's economic slump, which accounts for nearly 30% of China's textile and garment industry's export share, China's orders have been greatly reduced; on the other hand, there are also reasons for the international pfer of orders.

Due to the weakening of the price advantage of China's labor-intensive industries, some overseas orders have lower manpower costs to Vietnam, India, Indonesia and Kampuchea.

The shift is particularly evident in the clothing industry.

The adoption of the p Pacific (601099, stock bar) partnership agreement (TPP) will also have a great impact on China's textile and apparel industry.

In 2015, imported cotton yarn continued to impact on the Chinese market. Although cotton prices in China have dropped sharply in recent years and the difference in cotton prices between domestic and foreign countries has been narrowing, India, Pakistan and Vietnam still sell large quantities of cotton yarn to China through reducing profit margins.

In particular, Vietnam, because of the large number of large textile factories in Vietnam in the past two years, invested and built factories to produce cotton yarn in Vietnam, and then sold cotton yarn through its mature sales channels in China, so the amount of Vietnamese cotton yarn imported by China increased significantly.