Appointment to the WTO by end of 2001 and elimination of global textile quotas in 2005, presented rare opportunities for China’s textile industry.

In 2002-2005 years, China’s textile and apparel exports achieved rapid growth, with cotton consumption increased from 6 million tons to 9.7 million tons.

This gap between cotton output and demand first became evident in 2002, and since then China’s annual imports have expanded. From 2002 to 2005 period, imports stood at 180,000 tons, 870,000 tons, 1.91 million tons and 2.57 million tons per year, respectively. From January-August this year imported cotton touched 3.03 million tons mark.

In 2005, cotton industry made better achievements, farmer’s earnings increased, the textile industry continued to develop rapidly.

Cotton market was relatively stable. New progress was made in cotton quality testing system. According to statistics, the cotton purchase price rose about 20.4 percent over the previous year, and farmers earned an additional sum of 13.2 billion yuan due to cotton price rise.

In 2006, China’s cotton area grows, the weather has been normal, and cotton output increases. Textile production and exports will continue to grow, but it is still an arduous task to find the balance in regarding works. Experts warn that the bumper cotton harvest in 2006 could not fundamentally change the situation of China’s cotton supply and demand picture.

Experts said that China should properly resume cotton area in the three main cotton-producing regions of Yangtze River valley, Yellow River valley and Northwest Region. China should focus on scientific and technological progress to improve cotton competitiveness and raise cotton yield through coordinated development.