Home / Knowledge / News / Textiles / China's monetary policy may impact local cotton industry
China's monetary policy may impact local cotton industry
31
Jul '13
China’s efforts to reduce the rush of bank loans through its latest policy initiatives could lead to unforeseen effects on the cotton market, according to industry analysts.
 
The move would also affect the imports of cotton as it would encourage the domestic textile mills of the country to import more foreign cotton, they add.
 
In June 2013, the People’s Bank of China announced its intention to tighten the monetary policy in order to achieve a more stable economic growth, a move aimed at curbing the risks of bank loans.
 
The move by the People’s Bank would have a direct impact on the cotton industry in China, as it would decrease the interest of domestic cotton textile mills in purchasing domestic cotton, and increase their interest in buying foreign cotton, as it would become cheaper to buy foreign cotton even after including tariffs.
 
The new policy already had an immediate impact on spinners who are reducing purchases from the state reserves, which require payment upon delivery, and expanding imports with 90-day letters of credit, the International Cotton Advisory Committee (ICAC) said in a recent statement.
 
Earlier this month, China announced that for import and export of cotton by the textile industry, tariff rate will be calculated on the basis of 1 US dollar = 6.1652 yuan for the month of August 2013.
 
Tariff on cotton imports by China for the month of July was calculated on the basis of 1 US dollar = 6.1677 yuan.
 

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: Fancycrave.com from Pexels

Apparel/Garments | On 22nd Jun 2018

EU's retaliatory duty on US apparel takes effect

As part of the three-pronged response outlined by the European...

NCC applauds House passage of farm legislation

Textiles | On 22nd Jun 2018

NCC applauds House passage of farm legislation

The National Cotton Council (NCC) of the US has welcomed the passage...

Courtesy: Roman Pohorecki from Pexels

Apparel/Garments | On 22nd Jun 2018

UK launches inquiry on sustainability of fashion industry

The Environmental Audit Committee of the UK Parliament has launched...

Interviews View All

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Representatives
Textile & apparel industry

GST is a complicated and lengthy process

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Urmil Arya

Sushila International, a well established textile organisation established ...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search