Promoting Chinese Cotton
March 16, 2010 Over the last eight years since China joined the World Trade Organization (WTO) and reform and opening-up of the cotton market was launched in 2001, a multi-element and internationalized cotton market has been formed, multi-channel competition mechanisms and a market-based price formation mechanism for the cotton market have been established, and macro control has been further enhanced while the cotton market has been basically stable — all achieving the requirement of the State Council to “actively promote reform and maintain the steady transition.”
Meanwhile, the cotton industry in China has successively achieved excellent performances with total yield, unit yield, spinning output and export of textile products and garments, all creating a historical record.
When the cotton business changed from the situation of wandering and chaos in the early period of reform to rationality and maturity, the business became aware that some in-depth problems of industrial development needed to be resolved. These included: the sharp rise and fall of cotton price and lack of protection policy for cotton farmers; numerous, but small and weak cotton enterprises; the absence of a quality assurance mechanism with adaptation to the market system; distorted statistical data of cotton; an imperfect credit system; and the absence of a long-acting policy mechanism for industrial development.
Since 2003, when it was established as an industrial organization representing cotton farmers, cotton dealers and cotton textile enterprises, the China Cotton Association (CCA) has always focused on the sustainable development of the cotton business. Without managing the control policy and dealing with cotton business, CCA has been working in a detached position and with a public vision for the overall interests of the business and striving to play a role as a “spokesman of business and assistant of the government.”
For five consecutive years, nine reports have been presented to the State Council, representing the appeals and suggestions of the business, and have pushed forward the implementation of several industrial support policies. Especially when the international financial crisis brought unprecedented difficulties to the cotton industry and textile industry in 2008, CCA reported several times to the State Council, for which the Premier had given immediate instructions and relevant support policies had been implemented.
The China cotton warning system has been established for different links such as cotton production, circulation, textile, import and export, etc., to provide services for the governmental macro control and industrial operation. Rules for the cotton trade and industrial warning system have been formulated and implemented to establish the industrial autonomy and credit system.
In 2007, CCA joined the Committee for International Co-operation Between Cotton Associations (CICCA), becoming a member of the international cotton family and playing an increasingly big role in promoting the cooperation with cotton organizations of different countries and maintaining the trade order.
CCA has registered and promoted the symbol of “Cotton China” to elevate the overall quality level of the Chinese cotton business, increase the notability of Chinese fine-quality cotton and cotton products, expand the market share and actively promote cotton consumption — all to benefit cotton farmers, cotton dealers and cotton textile and promote the benign development of the industry.
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