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Analysis on China Cotton Market

 

Analysis on China Cotton Market

Jian Wang *  Michel Fok**


Abstract: China is the world’s largest cotton producer and consumer and its domestic cotton demand and supply have a great influence on the world market. This paper firstly gives a discussion on Chinese cotton market, especially from a viewpoint of history to study domestic market price fluctuation. The cotton market history from P. R. China’s setting up to present has been divided into four stages and characterized as different agricultural policies applications and economic periodicities. Concluding from the history, artificial influences may be the most important reason of market inequilibrium, up to now, market and artificial interruption, are also the key problem. Then it takes domestic cotton demand as a study object, trying to find what will be a statistic significant cotton demand in national level and it’s underneath demand frame. Through a series of analysis on the demand frame, problems have been clearly displayed, an open microeconomic circulation supports our study and six variables had been described by statistics. Therefore, we can analyze the cases of real cotton demand that includes supply and demand reactions in China with experience and estimations. Otherwise, international cotton market is greatly interacted with Chinese domestic market more and more today. Some necessary analysis, such as international cotton supply and demand, Chinese cotton stock policy and world price long run tendency, are very important factors for Chinese cotton development. Those may concern Chinese access to WTO, cotton trade quota and tariff, welfare comparison, etc., all have been discussed in the paper. 

Key words: cotton market history of China   domestic cotton Demand   statistics description   microeconomic circulation   international price tendencies

 

1. The History of Cotton Market in China

1.1 Backgrounds and Problems

Chinese cotton production now is taking an important position in the world. Its cotton production is big enough to occupy 13% for planting areas and 21% for output quantity in the world. It is also the highest per unite area yield country among five big cotton production countries. Today China not only can participate in the regulation of cotton trade, by its cotton import and export to form a key factor of cotton trade equilibrium in international market; but also is a very big cotton consumption country, current its textile export is in 13% and cotton consumption is in 24% of the world. So cotton brings great benefit to China today, however, its history is not so much clear and cheerful.


* Jian Wang, visiting scholar of Cotton Program, CIRAD, 34398 Montpellier, Cedex 5, France and professor of Agricultural University of Hebei, Baoding, P. R. China, Postcode: 071001; Email: wjian1958@hotmail.com.

** Michel Fok, Cotton Program, CIRAD, 34398 Montpellier, Cedex 5, France.

 

 


 

 


 

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          參考文獻:

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