Study On Chinese Cotton Import And Its Dependence Degree

China has become the world’s largest cotton producer, importer and consumer. Cotton is important for the healthy and stable development China’s economy especially the textile industry, and revenue from cotton is the mainly revenue of cotton farmer and cotton producing area government. Chinese domestic cotton can not meet the China rapid growth of cotton demand because of farmland areas per person, technology and production methods. Therefore, the cotton import is an important way to keep the balance of supply and demand. After China’s accession to WTO, the import of cotton grows rapidly. Chinese cotton imports accounted for more than half of global imports in2012. Therefore, we must attach importance to China cotton import phenomenon, explore the deep regular import dependence degree, clear cotton import market structure, grasp the degree of influence factors of cotton import dependence degree.This paper studies the characteristics of Chinese cotton imports, including imports, import prices and market structure. This paper empirically analyzes the Chinese cotton imports overall and the main import source country’s dependence degree base on the Armington substitution elasticity, and analyses the influence factors of the price gap between the domestic producer price for cotton and its border price and the influence. Finally, according to the research results, the corresponding policy suggestions are put forward for cotton enterprises and farmers to protect the interests of China cotton imports, stable and healthy development.The results show that, since China joining the WTO, Chinese cotton imports increased rapidly, and geographic concentration of imported sources is high, whether the overall import price or the main import source country import prices are around a center line wave, and direction of fluctuations is consistent. The market structure of Chinese cotton imports is very concentrated, Chinese cotton imports extremely uneven distribution in all import source country, concentrated in a few large importing countries of origin, however, the distribution between them tends to average. Chinese cotton import dependence degree is high and dependence degree on the major source of imports is different. The price gap between the domestic producer price for cotton is an important reason for the high degree of dependence degree. And after China joining the WTO, the change of international transaction price is a factor in the price gap expansion. China implemented a sliding duties does not significantly affect a large price gap, but temporary storage of cotton influence policy the price gap. In order to ensure stable and healthy development of Chinese cotton imports, China need to diversify sources of the importing country, optimization the market structure, take full advantage of the international and domestic markets, to meet the domestic demand for cotton; perfect cotton purchasing and storage policy to balance the interests of all parties.