Gao Fang:Promote Chinese Cotton Industry for Sustainable Development

Source:China Cotton Association  Date: 22/June/2009

One Over the last eight years since China joined WTO and reform and opening-up of cotton market was launched in 2001, multi-element and internationalized cotton market has been basically formed, multi-channel competition mechanisms and market-based price formation mechanism of cotton market has been basically establish, macro control has been further enhanced and cotton market has been basically stable, achieving the requirement of the State Council to ?°actively promote reform and maintain the steady transition?? Meanwhile, cotton industry has successively achieved excellent performances, with total cotton yield, unit yield, spinning output and export of textile products and garment all creating a historical record. Two When the cotton business changed from the situation of wandering and chaos in the early period of reform to the rationality and maturity, the business has become aware that some in-depth problems of industrial development need to resolved: • Sharp rise and fall of cotton price and lack of protection policy for cotton farmers; • Numerous, but small and weak cotton enterprises; • Absence of quality assurance mechanism with adaptation to the market system; • Distorted statistical data of cotton; • Imperfect credit system; • Absence of long-acting policy mechanism for industrial development. Since 2003 when it was established, as an industrial organization representing cotton farmers, cotton dealers and cotton textile enterprises, China Cotton Association (CCA) has always focused on the sustainable development of cotton business. Without managing the control policy and dealing with cotton business, CCA has been working, in a detached position and with a public vision, for the overall interests of the business and striving to play a role as a ?°spokesman of business and assistant of the government?? For five consecutive years, 9 reports have been presented to the State Council, representing the appeals and suggestions of the business, as has pushed forward the implementation of several industrial support policies. Especially when the international financial crisis brought unprecedented difficulties to the cotton industry and textile industry in 2008, CCA reported several times to the State Council, representing the appeals and suggestions of the business, for which Premier had given immediate instructions and relevant support policies had been implemented. With the State enhancing the acquisition and reserve, cotton market stopped declining and remained stable, price rose back, acquisition process was gradually accelerated and losses of cotton farmers were minimized. China cotton warning system has been established for different links such as cotton production, circulation, textile, import and export, etc to provide services for the governmental macro control and industrial operation: Rules for cotton trade and industrial warning system have been formulated and implemented to establish the industrial autonomy and credit system as per plan and schedule: Serve properly the cotton farmers and enterprises, actively provide members with information consulting, business training, protection of rights and arbitration services, coordinate in settling disputes in trading and recommend member enterprises for international market. Cotton Farmers Cooperatives Branch plays an active role as spokesman of cotton farmers, representing the national conditions upward and delivering information downwards. Annually, it trains member cotton farmers by over 10,000 person-times and regularly organizes experts to provide technical services on the spot: In 2007, CCA joined CICCA, becoming a member of international cotton family and playing an increasingly big role in promoting the cooperation with cotton organizations of different countries and maintaining the trade order: CCA has registered and promoted the symbol of ?°Cotton China??to elevate the overall quality level of Chinese cotton business, increase the notability of Chinese fine-quality cotton and cotton products, expand the market share and promote actively cotton consumption, benefiting cotton farmers, cotton dealers and cotton textile and promoting the benign development of the industry. Three The international financial crisis has kept us thinking: for a country or a business, sustainable development requires for institutional assurance and for excellent environment; otherwise, more haste, less speed. Economic main aim for profiting. Only by relying on good faith for profiting can businesses achieve the sustainable development. A perfect system should be able to encourage proper profiting and control improper profiting, can increase the cost of those losing faith and violating the rules and eliminate them from the market, as well as can increase the incentives for those keeping faith and following the rules so that they will achieve abundant returns. Only by doing so can a foundation be laid for market faith to create an effective market. CCA will continue to try its efforts in undertaking extensive surveys and studies, representing the collective wisdom of the business and promoting the long-acting development system established in Chinese cotton industry. Upon reviewing the trade rules for import cotton, CCA starts to establish the trade rules of domestic cotton and makes constant efforts in promoting the construction of the credit system. According to one African proverb, to go faster, you should walk alone; to go farther, you should walk with companions. Chinese cotton industry still has a long way to go. Let us travel in companion with each other. The landscape is even more beautiful on the other side of the mountain.
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