PURCHASES AND SALES OF COTTON FOR THE CHINESE NATIONAL RESERVE

摘要

China is the largest cotton producer, consumer and importer. In 2008/09, it accounted for 34% of world cotton production, 39% of world mill use and 23% of world imports. As such, the Chinese market and, in particular Chinese cotton imports, are of significant importance to the cotton industry in the rest of the world. The level of government involvement in the Chinese cotton market has declined since the beginning of its reforms in the late 1990s. However, the Chinese government continues to intervene in its domestic cotton market in various ways, including subsidies for planting seeds, loans to traders for cotton procurement, purchase or sales of cotton for the national reserve, and cotton import quotas.