Industry And Cluster | News & Insights

Cotton exports from Australia to China are declining

Published: June 25, 2021
Author: Manali bhanushali
The quantity of Australian cotton that passed Chinese customs clearance remained low, while price quotation and purchasing were sluggish for the commodity. Chinese businesses had become cautious about importing Australian cotton amid the two countries’ cooling relations. Experts said that Australian cotton is losing its once favored market status in China as demands soared for domestically produced cotton.
China’s cotton imports from Australia have continued to fall this year, owing to deteriorating ties between the two countries. China bought 12,706 tonnes of cotton from Australia in the first four months of this year, a 68.4 percent decrease year on year. From September 2020 to March 2021, China was the main significant destination for Australian cotton, accounting for 36.5 percent of total cotton exports.
The deterioration of diplomatic ties has resulted in a drop in Australian cotton shipments to China. According to certain Australian media, there is anticipation that a large punitive tariff may be imposed on Australian cotton. According to Chinese analysts, Australia is “eating its own medicine” by losing market share in China, not just as a result of the country’s rising animosity against China in policymaking, but also because its products have lost price or quality advantage.
Australia’s cotton did not feature on China’s list of possible cottons for establishing a cotton processing base. According to experts, China can easily find alternatives to substitute cotton from Australia, which is a big cotton grower. Jiao “We may expand the country’s cotton growing region or import it from other places like Brazil or the Black Sea countries.”

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