Cotton occupies an important position in China’s national economy. It is an important strategic material related to China’s national economy and people’s livelihood and an industrial raw material for the cotton textile industry. In recent years, although China’s cotton planting area has declined, thanks to the improvement of cotton mechanization, the progress of cotton harvest has accelerated, so China’s cotton production has remained stable as a whole.
In order to ensure the stability of the domestic cotton supply chain, China has actively expanded its import channels and strengthened cooperation with important cotton-producing countries such as Brazil and India, with significant results. Xinjiang is the largest cotton production area in China, and the effect of cotton mechanization has been significant. In the future, as cotton mechanization continues to advance, Xinjiang cotton production will continue to grow.
Cotton sown area has dropped to its lowest in nearly seven years
Cotton occupies an important position in China’s national economy. It is an important strategic material related to China’s national economy and people’s livelihood and an industrial raw material for the cotton textile industry. In recent years, due to the adjustment of economic structure and other factors, China’s cotton planting area has shown a trend of volatility and decline. The cotton planting area in 2014 was the highest value in recent years, reaching 4.18 million hectares; in 2020, the cotton planting area in China dropped to 3.17 million hectares, the lowest value in the past seven years.
Small increase in cotton production
In recent years, although China’s cotton planting area has declined, thanks to the improvement of cotton mechanization, the progress of cotton harvesting has accelerated. According to data from the Ministry of Agriculture and Rural Affairs, the level of cotton mechanization in China increased from 70.74% to 81.18% from 2017 to 2019. . Therefore, the overall cotton production in China remains stable. According to the National Bureau of Statistics, China’s total cotton output in 2020 will reach 5.91 million tons, an increase of 0.4% from 2019.
Significant increase in cotton imports
China is the world’s largest cotton producer and the largest cotton consumer. In recent years, China’s cotton consumption has stabilized at 7.5 to 8.5 million tons per year, accounting for one-third of the total global cotton consumption. In order to ensure the stability of the domestic cotton supply chain, China has actively expanded its import channels and strengthened cooperation with important cotton-producing countries such as Brazil and India, with significant results.
From 2016 to 2019, China’s cotton imports increased from 900,000 tons to 2.16 million tons. From January to February 2021, China’s cotton imports grew by 68% year-on-year.
Xinjiang cotton production will continue to grow
Xinjiang is the main producing area of cotton in China. Data from the National Bureau of Statistics and the Xinjiang Uygur Autonomous Region Statistics Bureau show that in 1949, Xinjiang’s cotton production accounted for only 1% of the country’s cotton production, which rose to 60% in 2014. By 2020, Xinjiang’s cotton output will reach 5.161 million tons, an increase of 3% over 2019, and it will account for 87% of the country’s cotton output.
With the promotion of mechanized cotton picking in China, the picking rate of cotton in Xinjiang has increased year by year, from 27% in 2017 to 75% in 2020. According to the work points of the Agricultural and Rural Mechanization Development Center of Xinjiang Uygur Autonomous Region in 2021, it is necessary to accelerate the improvement of the mechanization level of cotton production in 2021 and guide the transformation of cotton production to full mechanization. The mechanization rate of the whole process reached 88%, and the rate of cotton mechanization increased by 4%. In the future, as Xinjiang’s cotton mechanization continues to improve, Xinjiang’s cotton output will continue to grow.
Source: Foresight Economist