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China cotton mills to avoid Australian exports

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Cotton mills in China have been told to stop using Australia cotton; Australia fears that produce is being specifically targeted by the Chinese government.

Processors in China are set import quotas each year by the Chinese Communist Party, but have been warned by the National Development Reform Commission that quantities will reduce next year if they continue to import Australian product. China imports about two-thirds of Australia’s annual cotton exports, which can be worth more than $2 billion a year.

Australia has exported cotton to China for decades. This crop is one of Australia’s top agricultural exports to China. If seasonal conditions are good, cotton exports from Australia can be as high as $2.5 billion a year, with most of the earnings coming from China.