China's cotton yarn imports from Pakistan rise in 2023.

China's imports of cotton yarn increased in 2023, with Pakistan and Uzbekistan being the major drivers of this growth. Imports from Pakistan reached a record high of $695 million, marking a significant increase of 46.7 per cent year-on-year. This increase was driven by a large price difference between domestic and foreign cotton yarn, which made imports more attractive to Chinese companies.

However, the recent rise in energy prices and power outages in Pakistan have led to the closure of more than a thousand textile factories, which could dampen future export growth. India and Uzbekistan also saw significant growth in their cotton yarn exports to China in 2023. Exports from India increased 243.2 per cent, while exports from Uzbekistan skyrocketed by 867.1 per cent. This growth was due to a combination of factors, including China's increasing demand for cotton yarn, the competitiveness of Indian and Uzbekistani yarn producers, and the depreciation of the Indian rupee and Uzbekistani som.

China's total cotton yarn imports are expected to reach $6 billion in 2023, up from $5.98 billion in 2022. This growth is being driven by China's large and growing textile industry, which is a major consumer of cotton yarn.

The outlook for China's cotton yarn imports is positive in the long term, as the country's textile industry is expected to continue to grow. However, there are some short-term risks, such as the recent rise in energy prices in Pakistan and the global economic slowdown.