China to Release Sliding Tax Import Quotas on Cotton Enterprises

According to a report from the China Cotton Association, the government of China will release sliding tax import quotas for cotton enterprises in an effort to aid the textile industry.

Entering 2010, the report states, improvement in the international economic situation caused China’s economy to rebound significantly. As textile exports and demand for cotton increased, the cotton price gap between domestic and overseas markets narrowed.

The report notes that “textile demand is the main factor affecting the cotton market. The high price of cotton yarn can support the current high cotton price, but (if support for) fabric, clothing and other products decreases, the export situation (will be) subject to (these) uncertainties.”