By Qin Zhongchun & Li Qing, Research Team on “Agricultural Strategic Adjustment in the Course of High-Level Opening-up”, Department of Rural Economy, DRC

Research Report, No. 70, 2020 (Total 5814) 2020-4-1

Abstract: China has made major reforms on its cotton policy over the past 20 years, and these reforms mainly include furthering the reform of the cotton circulation system, advancing the building of the cotton market nationwide and improving the services for the cotton industry. Related departments have canceled the control of cotton import from foreign countries, implemented the cotton import tariff and sliding-scale duty quotas, established high-quality commodity cotton bases as well as production and reserve zones, enhanced inspection and supervision on the quality of cotton, implemented and abolished the subsidy policy for high-quality cotton seed, and launched the campaign of improving cotton yields across China. The authorities have also implemented and canceled the temporary cotton purchasing and storage policy nationwide, protected the interests of cotton farmers, ensured supplies in the cotton market, reformed the targeted price system in the pilot zone of Xinjiang Uygur Autonomous Region, separated pricing from subsidies to improve the cotton pricing mechanism, launched targeted subsidies for cotton farmers in major cotton producing provinces besides Xinjiang, protected the interests of cotton farmers and the regional ecological environment, improved China’s special cotton storage and management mechanism to increase the efficiency and effectiveness of storage, and pushed the government to play a better role. The formulation and practices of the policies have generated valuable experience and important lessons, which provide references and lay a foundation for understanding and handling the relations between the government and the market, promoting the reform of China’s cotton policy, and improving and innovating the agricultural support and protection system.

Key words: cotton policies, reform conditions, major achievements, experience and lessons