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NEWS

2019-08-27

"Cotton Safety" sounds the alarm bell in a big textile country

Inrecentyears,China'stextileindustryhasmaderapidprogress,andhasbecomeamajortextilecountryintheworld.Withlowcost,ithasbeensweepingtheworldmarket,forcingmanycountriestosetrestrictionsoneafteranother.TherapidriseofChina'stextileindustryhasbroughtanunexpectedproblem:thereisahugegapincottontextilerawmaterials,andthesecuritysituationofcottonisgrim.Expertspointedoutthatforthepowerfultextileindustry,China'scottonresourceshaveenteredastrategicshortageperiod,withagapof2milliontons,onethirdofChina'sdemandwilldependontheinternationalmarket.Onceinternationalspeculatorscontrolthemarket,thecottontextileindustrywillfacegreatrisks.Thegapishugeanddependsheavilyontheinternationalmarket.MaDongxiang,vicepresidentofChinaCottonCirculationEconomicResearchAssociation,recentlypredictedthatthenationalcottonshortagewillreach3.2milliontonsthisyear,whilethetotalcottonproductioninChinathisyearisonly5.7milliontons,withtheshortageaccountingformorethanhalfoftheoutput.AlthoughChina'sexportofcottontextileshasbeenaffectedbyEuropeanandAmericanrestrictionsthisyear,thecottonconsumptionofChina'scottontextileenterpriseshasmaintainedahighgrowthrate.MaoShuchun,anexpertattheCottonResearchInstituteoftheChineseAcademyofAgriculturalSciences,pointedoutthatinthefirsthalfofthisyear,thespinningvolumeofChina'stextileenterprisesincreasedby23%yearonyear,whichexceededtheexpectationsoftheindustry.ZhangShiping,chairmanofShandongWeiqiaoTextileGroupCo.,Ltd.,thelargestcottontextileenterpriseinChina,introducedthatin2004Weiqiaohadused800,000tonsofcotton.In2005,cottonuseisexpectedtoincreaseby25%to1milliontons.GuoMingquan,managerofShandongCottonandHempCompany,believesthatinthenextthreetofiveyearsoreventenyears,China'scottonsupplywillbeinshortsupplyforalongtime,withanannualgapofatleast1.5milliontonsto2milliontons.Atpresent,cottonhasbecomethethirdlargestimportedagriculturalproductinChinaaftersoybeanandedibleoil.BaiheExpertspredictthatby2010,China'sspinningvolumewillreach15milliontons,accountingforhalfoftheworld'stotal.Forthepowerfultextileindustry,cottonresourceshaveenteredaperiodofstrategicshortage.Accordingtothegapof2milliontons,onethirdofChina'sdemandwilldependontheinternationalmarket.Oncetheinternationalspeculatorscontrolthemarket,thecottontextileindustrywillfacegreatrisks.OnSeptember1,1999,China'scottonproductionandprice"doublefluctuation"endeditslong-termplanningcontrol,themarketwasliberalized,thepurchasepriceandsalepriceofcottonweremainlyformedbythemarket,andthestatenolongermadeuniformprovisions.Intheyearwhenthemarketwasopened,cottonproduction,whichhadbeenmaintainedbyadministrativedecrees,declinedrapidly.In1999,thecottonplantingareainChinadroppedsharplytoitslowestlevelinhistory.Atthesametime,China'scottonproductionhasalsofallenintoa"strangecircle"ofviolentfluctuations,whichhasnotyetcomeout.Intermsofcottonprices,itishighlightedbythesharpriseandfall.In2003,domesticcottonpricesrosebymorethan100%.In2004,thepriceofcottonfellsharplyagain,andthedifferenceofChina'scottonpriceindexwas35.9%.Thesharpriseandfallofcottonpricesmakecottonspinningenterprises,cottonprocessingandcirculationenterprisesandcottonfarmersbeartremendousrisksandpressures.ZhaoFahong,directorofShandongCottonProductionOffice,saidthatwhencottonpricesfellsharply,cottonfarmerswerehitandthecottonspinningenterpriseswereshortofrawmaterials;whencottonpricesrosesharply,cottonfarmerscouldsellmoremoneyandshouldbenefit.Butoftentheyearofhighpriceistheyearoflowcottonareaandyield,farmerscannotgetmuchbenefit.Thehighcottonpriceincreasesthecostoftextileenterprises,andcottontextileenterprisescomplainendlessly.Withtheriseandfallofprices,fluctuationsincottonproductionintensified.LiFuguang,deputydirectoroftheCottonResearchInstituteoftheChineseAcademyofAgriculturalSciences,introducedthatthecottonplantingareain2002was62millionmu,10millionmulessthanthepreviousyear.Basedonthe22%increaseincottonplantingareain2003comparedwith2002,thetotalyieldofcottondecreasedby1%duetodisasters.Drivenbyhighprices,cottonplantingareaexpandedby11.4%lastyear,withtotaloutputreaching6.32milliontons,anincreaseof30%,arecordhigh.Thisyear,becausethepriceofseedcottonfellto4yuanperkilogramatthebeginningoftheyear,whichdampenedtheenthusiasmofcottonfarmerstogrowcotton,theareaofcottonplantinginthewholecountrydroppedby20%.Thedrasticfluctuationofcottonmarketpriceandproductionfluctuationoverlapeachother,furtheramplifyingitsinstability.Byself-sufficiencyorbyimport?ExpertspointedoutthatfacingthehugegapofcottonproductionanddemandinChina,relyingsolelyontheinternationalmarketcarriesgreatrisks.Wemustbaseourselvesonthedomesticmarket,increasecottonproductionandexpandsupply.LiFuguang,deputydirectorofChinaCottonResearchInstitute,saidthatatpresent,China'scottonproductioncapacityisstillquitefragile,especiallytheabilitytoresistdisastersispoor.Climateanomaliesoftencausesignificantlossesincottonproduction.Therefore,fromanotherpointofview,improvingdisasterresistancecanreducelossesandincreaseproduction.Expertsappealedthat,inviewofChina'scottonsecurityconsiderations,afterthesuccessfulimple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