Apparel / Textiles & Accessories

China's status as the world's largest importer of cotton is waning, according to a new report from the U.S. Department of Agriculture's Economic Research Service, as cotton continues to flow into other countries with thriving textile industries. Shortly after China joined the World Trade Organization in 2001, its textile manufacturers pushed it to become the world's leading importer of cotton for international trade.

However, Chinese cotton imports fell from a peak of 24.5 million bales in 2011 to 4.4 million bales in 2015, although they rebounded to 9.5 million bales in 2021. During the same period, countries competing in international trade, such as Vietnam, Pakistan, Indonesia, Bangladesh and Turkey, expanded their textile industries and boosted cotton imports, which now exceed China's combined.

From 2021 to 2030, the U.S. Department of Agriculture's Economic Research Service forecasts that these countries will increase cotton imports by 810,000 bales, while China's international trade imports will increase by 3.5 million bales. By 2030, these five countries are expected to account for 47% of world cotton imports, while China only accounts for 24%.

According to the report, the increasing diversification of global cotton demand has helped U.S. cotton international trade exports remain relatively strong, and the report predicts that between 2021 and 2030, U.S. cotton international trade exports will increase by about 1.4 million bales.

However, recent flood damage in Pakistan could impact cotton supplies in the coming weeks and send prices soaring. Pakistan is the world's fifth-largest cotton producer, with most exports to major textile manufacturing hubs such as Bangladesh and China, accounting for 50 percent of the total.

Pakistan also mainly exports cotton yarn to China and Bangladesh, and cotton fabric to the EU and Bangladesh. In 2021, the US will account for 5% of Pakistan's cotton yarn exports and 3.8% of cotton fabric exports. The floods could also complicate the search for alternatives to Xinjiang cotton for brands and retailers.