China Holds Cotton Quota Steady Despite Trade Slump

China will allocate 200,000 metric tons of sliding tariff rate cotton import quotas to textile firms in the processing trade, matching last year’s volume, according to the National Development and Reform Commission (NDRC). Quotas will be issued based on contract applications until the cap is reached, with no further submissions accepted. The deadline for applications is December 31, though the document does not specify when quotas will be issued. China is a major cotton importer, consistently ranked among the top global buyers despite its sizable domestic production. In 2022, it imported USD 8.29 billion worth of cotton, mainly from the U.S., Brazil, and Vietnam. The quota move comes amid a sharp 74.2% drop in cotton imports to 520,000 metric tons from January to July, reflecting weaker demand and tighter trade conditions. The new quota aims to “meet cotton needs” of domestic processors and stabilize supply for China’s vast textile industry.