US'S "Special Concern" For China'S Cotton Policy Meets Again With Trade Stumbling Block

Recently, the American Cotton Association said that China's Cotton Subsidy Policy It violated Global trade rules and strongly appealed to US regulators to investigate China's subsidy level.

According to media reports, the United States Cotton Association (NCC) for China cotton The subsidy has its own estimate. NCC said that the Chinese government's subsidy exceeded the stipulated level, that is, 8.5% of the national crop output value in the past four years. Subsidies in 2014 were equivalent to 29% of output value, and over 30% in 2012 and 2013.

The United States' special concern for China's cotton policy fully demonstrates the fierce competition in the cotton market. Opening up the history of trade differences between China and the United States is not difficult to find the same fact that trade disputes are always entangled with interests. Interest is always the first reason for differences. Similarly, the United States is closely related to the accusation and interests of China's cotton policy.

Chen Tao, an agricultural analyst at China Information Network Industry Research Institute, told China Daily News reporters that the US criticism of China's cotton policy actually wants to prevent China from implementing the cotton farmers subsidy instead of the purchase and storage plan through the WTO[micro-blog rule to increase the export volume of its own cotton.

In fact, China's cotton policy has changed, cotton subsidy has been replaced by cotton subsidy, and cotton target price subsidy has been replaced. Cotton import quota is no longer issued in 2015. It is a realistic consideration based on China's objective situation. "The change of China's cotton policy really needs to take account of multiple factors, which are closely related to China's current macroeconomic situation, China's and foreign cotton market situation, market supply and demand, cotton prices and the import and export of cotton." Chen Tao said.

Our country has been carrying out the temporary cotton purchase and storage policy since 2011. So far, it has been three years. In the past three years, the cotton temporary purchase and storage policy has played a stabilizing role in cotton prices. According to public data statistics, the average price of seed cotton purchase in 2011-2013 was 8.44 yuan / kg, which was nearly 20% higher than that in the 2008-2010 year before purchasing storage. Domestic cotton price (standard level) basically stabilized at 19 thousand yuan / ton, the fluctuation range is not more than 10%, while the international market cotton price fluctuation over the same period of more than 30%.

But there are still some problems behind the achievements. During the three years of storage and purchase, Cotton grower Income is increasing, cotton production and market prices are also stable, and the target of purchasing and storage is basically achieved. However, the policy of purchasing and storage has also caused some problems that can not be ignored, especially the problems such as the failure of price signals, lack of vitality in the market, expansion of internal and external spreads, and increasing financial burden. Zhou Shengtao, President of China Cotton Association, said.

Li Zhixue, an analyst at bLung consulting, also told reporters in the "China made economic news" that the reason why the state issued the new cotton subsidy policy was mainly due to the total inventory of the national lint reached 11 million tons, accounting for 60% of the global inventory. Huge inventory pressure, coupled with domestic and foreign cotton prices upside down, has long suppressed the normal upward space of cotton prices in China. Therefore, the state resolutely launched its efforts to regulate cotton prices to a reasonable range by market forces.

Industry observers said that the introduction of the new policy is of great significance for the future development of the cotton industry chain.

For the future direction of China's cotton policy, Chen Tao gave several suggestions. First of all, he thought that China might no longer introduce any form of cotton protection policy; in addition, it should encourage farmers to enter the city and encourage cotton cultivation, and should not blindly copy foreign cotton subsidy policies; at the same time, the necessary cotton reserves should be retained to meet the needs of cotton and sudden natural disasters.

Li Zhixue stressed that for cotton policy, we need to completely renew our concept. We must have sufficient confidence in the market economy, eliminate the psychological stereotypes and inertia thinking formed in the past when we are short of commodities, and fully understand the complementary role of commodity circulation formed by the international division of labor.