In August, China imported 651,522 bales (141,852 MT) of cotton, representing a decrease of 4% m/m, and an increase of 54% y/y. Imports from U.S. included 470,857 bales (102,517 MT), representing an increase of 5% m/m, and an increase of 543% y/y, accounted for 72% of the total. In 2020, Chinese cotton imports totaled 5,458,448 bales (1,188,437 MT) with a decrease of 17% y/y. U.S. cotton was ranked as the largest supplier with a total 2,266,329 bales (493,435 MT), accounting for 42% of total imports. The report (below) also provides information on other topics such as textile and apparel exports, the tensions between U.S. and China, and more.
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NCC Recommendations for COVID-19 Assistance
This week, the National Cotton Council released their recommendations for COVID-19 assistance. In the document, NCC discusses the economic devastation that COVID-19 has had on the cotton industry, including details regarding cancellations in export sales and decrease in world consumption. NCC provided 3 recommendations that would support the segments of the cotton industry. The recommendations can be found using the link below.
CNTAC Promotes Chinese Contract Performance
This week, Mr. Sun Ruizhe, President of China National Textile and Apparel Council (CNTAC), wrote a letter to ACSA to discuss actions they are willing to take to promote contract performance from Chinese companies. The letter from CNTAC is provided below.
ACSA Enhances Communication with CCA
ACSA has been in communication with the China Cotton Association (CCA) regarding trade between United States and China. This week CCA provided ACSA with the latest on the Chinese cotton industry. WANG Jianhong, Vice President and Secretary General, also wrote ACSA a letter thanking us for our latest discussions regarding the United States and China’s cotton industry.
Click Here for CCA letter
Click Here for translated CCA letter
Click Here for Chinese cotton industry information
ITMF Newsletter Indicates Large Decline in Global Orders
The International Textile Manufacturers Federation posted in its weekly newsletter that current orders continue to be down in the mist of the COVID-19 pandemic. They state that orders across all segments of the global textile value chain have fallen between 37%-46% depending on the segment. Visit the link below to see the full ITMF newsletter.
ACSA & WCSA Submit Comment Letters Regarding ELS Cotton’s Inclusion to CFAP
The American Cotton Shippers Association (ACSA) and Western Cotton Shipper Association (WCSA) would like to thank USDA for the opportunity to submit comment letters regarding the eligibility of ELS to the Coronavirus Food Assistance Program (CFAP). Both ACSA and WCSA provided information regarding the impacts of the US/China Trade War and COVID-19 on the cotton industry, in particular ELS cotton. Please see the following links to view the submitted letters.
Click Here for ACSA’s Comment Letter
Click Here for WCSA’s Comment Letter
Hawaii Meeting Indicated Improving US-China Relations
On June 16th and 17th, Mike Pompeo, United States Secretary of State, met with Yand Jiechi, member of the Political Bureau of the Central Committee of the Communist Party of China and Director of the Office of the Foreign Affairs Commission of the CPC Central Committee. The document below provides an overview of the meeting and suggestions on how to further develop the relationship between the United States and China.
House Ways and Means Committee Hearing: The 2020 Trade Policy Agenda
The House Ways and Means Committee held a hearing on Wednesday, June 17th regarding The 2020 Trade Policy Agenda. Ambassador Robert E. Lighthizer served as the witness for the hearing. Please see the link below for key takeaways, opening statements, and a summary of the hearing.
China’s Policy and Market Report
This report provides information about China’s cotton market, textile industry, and policy updates. The report provides details regarding China’s cotton imports, 2020 planting area, and prices (both imported and domestic). It also provides information regarding China’s man-made fiber production and textile/apparel exports. Lastly, the report gives details regarding where China imported their cotton from. For May, the United States was the leading exporter of cotton to China.
Senator Wicker Advances Legislation to Establish National Shipper Advisory Committee at the FMC
The U.S. Senate Committee on Commerce, Science, and Transportation approved S. 2894, the Federal Maritime Commission National Shipper Advisory Committee Act of 2019. The news press from the committee was released on May 20, 2020.
