China’s position as the top global cotton importer is weakening as cotton shipments flow into flourishing textile industries in competing countries.
USDA’s Economic Research Service reports that soon after China joined the World Trade Organization in 2001, the nation’s textile manufacturers became the world’s leading importers of cotton.
Following years of rising production costs, volatility from government intervention in the market, and government caps on the volume of imports, China’s cotton imports dropped from their peak of 24.5 million bales in 2011 to 4.4 million bales in 2015, before rebounding to 9.5 million bales in 2021.
Meanwhile, competing countries, including Vietnam, Pakistan, Indonesia, Bangladesh, and Turkey, expanded their textile industries and boosted cotton imports over the same period.
These countries’ combined imports now exceed China’s volume of cotton imports. This increasing geographic diversification of global cotton demand has helped U.S. cotton exports to remain relatively robust despite volatility in China’s imports over the past decade.