A Look at China’s New Political and Economic Trends Under the New Normal

Here is our analysis report on this year’s ‘Two Sessions’ that finished on March 15th, 2015.  As we understand it, the outcomes of the ‘Two Sessions’  can be summarized in 3 points:

  1. The Chinese economy will continue to slow down under increased pressure from economic adjustment and proactive reform in 2015
  2. The economy isn’t declining across the board – some industries will benefit from the New Normal
  3. The Chinese government will continue to streamline administration and delegate powers to lower levels of government

Chinese traditional industries, particularly traditional manufacturing, will bear the brunt of the oncoming economic slowdown. The textile industry, as one of China’s typical traditional manufacturers will continue to face such challenges due to decreasing orders, increasing costs and declining profits.  The positive news is that both the Chinese government and textile industry are seeking to stem the economic downward trend.

We advise the US cotton industry to adapt to the New Normal and explore opportunities according to industrial, sectoral, and regional priorities which the Chinese government plans to support to elevate the demand of cotton in general.  China will continue to be an important marketplace for the growth of the US cotton industry.

For more details, please refer to the attached report.

More Advocacy Issues

On April 14, 2021, Memphis stakeholders wrote a letter to Chairman Oberman of the Surface Transportation Board expressing the need for assistance in resolving the current inland rail crisis affecting importers, exporters and motor carriers in the area. See the full letter below. Click Here

Read More
 

On March 15, 2021, Mississippi State University published the expected PLC payments for the 2020 year. Please see the link below for more information. Click Here

Read More
 

The link below provides an overview and key takeaways from the Senate Banking Committee hearing to consider Gary Gensler to be a Member of the U.S. Securities and Exchange Commission (SEC). Click Here

Read More
 

The National Cotton Council provided a cotton specific summary of the Quality Loss Adjustment Program and examples. See below. Click Here

Read More
 

Yesterday, the Senate Agriculture Committee held a hearing to consider the nomination of Tom Vilsack to be Secretary of Agriculture. Click below for details from the hearing. Click Here

Read More
 

China Policy and Market Update

January 29th, 2021

In December, China imported 1,629,083 bales (354,691 MT) of cotton, representing an increase of 80.43% month-on-month (m/m), and an increase of 130.9% year-on-year (y/y). The total value was USD $588.82 million, representing an increase of 89.33% m/m, an increase of 117.21% y/y. In 2020, Chinese cotton imports totaled 9,912,346 bales (2,158,159 MT), an increase of […]

Read More