“Australian cotton has become the latest victim of trade tensions with China.” The Australian Broadcasting Corporation (ABC) reported on the 16th that two Australian cotton industry associations issued a statement that day, saying that they learned that “relevant Chinese authorities have recently blocked Domestic textile mills use Australian cotton.” The industry is disappointed with this and is cooperating with the Australian government to understand the relevant developments. Australian Trade Minister Birmingham said on the 16th that he was seeking to obtain more information from China. He asked China to “rule out any discriminatory action against Australian cotton”.
According to ABC reports, exports to China usually account for 65% of Australia’s national cotton production. Last year, Australia’s total cotton exports to China exceeded A$1.1 billion. Agence France-Presse stated that the value and quantity of Australian cotton exports have fluctuated greatly. In recent years, Australian cotton has “benefited greatly” due to China’s increase in tariffs on US cotton. According to reports, the Chinese government has implemented a quota system on cotton imports in order to protect the interests of cotton farmers. China’s total cotton import tariff quota in 2020 is 894,000 tons. The US CNBC website stated on the 16th that these cottons are subject to an import tariff of approximately 1%. But if the quota is exceeded, a 40% tariff will be imposed, which is not commercially feasible given the market price.
Australian Agriculture Minister Littleproud called on China to “clarify” the situation on the 16th and reminded China of its fair trade obligations. Agence France-Presse stated that many of China’s recent trade measures against Australian goods have not been officially confirmed or fully explained, thus intensifying speculation that Beijing is launching a “shadow trade war.” ABC said that the Australian cotton industry is preparing to deal with the “devastating blow” that may come. It has been previously reported that Australian coal is “banned from import by China”, China has imposed high tariffs on Australian barley, and launched an anti-dumping investigation on Australian wine. </p
