Australia’s US$750 million cotton trade with China targeted, with mills ‘discouraged’ from purchases
- Cotton Australia and the Australian Cotton Shippers Association confirm reports of a verbal directive for Chinese spinning mills to stop using Australian cotton
- It emerged at the weekend that China had also verbally told steel mills and power stations to stop buying Australian coking and thermal coal
One of Australia’s most China-dependent exports, cotton, has become the latest product to be targeted, Australian industry groups said on Friday, joining a growing list that already includes coal, barley, wine and beef.
Cotton Australia and the Australian Cotton Shippers Association confirmed reports that China’s National Development Reform Commission (NDRC) has been “discouraging” Chinese spinning mills from using Australian cotton.
There has been no official confirmation from the Chinese management agency that sits under the State Council, and both industry groups are investigating.
The value of Australia‘s exports of cotton to China in 2019 was roughly US$750 million.
To now learn of these changes for Australian cotton exports to China is disappointing
“Our industry is working with the Australian government, including the trade and agriculture ministers’ offices, to investigate the situation and fully understand what is going on,” the two groups said in a joint statement.
