The surge in imports of cotton yarn by China, particularly from Pakistan, India, and Uzbekistan, has reached unprecedented levels, hitting a record $695.6 million in 2023, marking a significant increase of 46.7%, as reported by the China Chamber of Commerce for Import and Export of Textile and Apparel (CCCT).

This remarkable increase is indicative of a larger trend, reflecting Chinas response to challenges within Pakistans textile industry. These challenges include substantial energy price hikes and supply disruptions, which have resulted in the closure of over a thousand factories.

The competitive pricing of foreign cotton yarns, notably from Pakistan, India, and Uzbekistan, has been a driving force behind the surge in imports. Pakistan, in particular, experienced a staggering 351.1% growth in exports to China in December alone, contributing to 15.8% of Chinas total cotton yarn imports for the year.

Despite a slight decrease of 2.9% in Chinas overall yarn trade value to $19.68 billion in 2023, imports witnessed a notable increase of 13.2% to $5.98 billion. Specifically, cotton yarn imports saw a substantial surge of 43.4% to reach 1.687 million tons.

This surge underscores the growing reliance of China on imported cotton yarn, with Pakistan emerging as a significant contributor to Chinas textile imports. It highlights the evolving dynamics of global trade and the shifting patterns of supply and demand in the textile industry.