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What Is China'S Acquisition Of US Cotton?

2020/5/20 19:19:00 4

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In January 15, 2020, the first stage economic and trade agreement between China and the US was successfully signed at the White House. This marks the end of the past two years of trade disputes between China and the United States. In the next period of time, the two sides will cancel part of the added tariffs in accordance with the agreement. At the same time, China pledged to increase US $200 billion in purchases of US goods in the next 2 years, including the purchase of US cotton. Therefore, since the signing of the agreement, market participants have been highly concerned about the progress of China's import of US cotton.

So what is China's acquisition of US cotton?

According to the US Department of agriculture's report on Zhoukou's export sales in the past two months, China's basic weekly contract volume is in the lead. This has something to do with China's official start of excluding the US cotton tariff in February. According to part of the domestic exclusion tariff application enterprises feedback, pre application to exclude the audit cycle is longer, the current enterprises only need according to their own needs, in one working day can complete the exclusion of the application process.

On the other hand, as of April 22nd, there were 11 batches of textiles involved in the 12 batch of US $200 billion taxable products, involving 48 textile tax numbers. The products excluded were no longer subject to 301 duty when they exported to the United States. Therefore, from the perspective of the specific implementation of tariff exclusion, Sino US trade has been advancing in a positive direction for the time being.

According to foreign media reports, in May 3rd, Trump's acceptance of Fawkes's exclusive interview at the US Lincoln Memorial made the market parties worried about the implementation of the Sino US trade agreement. On Sino US relations, he said: "if China fails to implement the first stage agreement, new tariffs will be imposed. We will have to see what will happen in terms of purchase in the future. On the morning of May 8th, the representatives of China and the United States re energized that they would strive to create favorable atmosphere and conditions for the implementation of the first stage economic and trade agreement between China and the United States, and promote positive results. Thus, the idea that the US side wants to push China to accelerate the purchase of US agricultural products has not changed through continuous pressure. Follow up, whether China and the United States can properly handle differences and ensure that the implementation of the agreement still has variables.

It is also understood that the spot price of Qingdao and US cotton is around 12500 yuan / ton, which is less than the price advantage of other imported cotton of the same grade, and the actual digestion speed is slow. Therefore, whether China can continue to maintain a large number of US cotton contracts will be restricted by the relevant factors such as the actual demand of the domestic enterprises, the price ratio of the United States and cotton, the Sino US trade agreement and so on.