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Friday, 11 December 2020 15:41

Australia to boost cotton demand from Vietnam

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As tensions with China mount, Australia seeks to boost demand for its cotton from countries such as Vietnam.

In October, China ordered its cotton mills to stop buying Australian cotton, threatening a trade worth about A$900 million ($672.30 million) amid escalating tensions between the two countries. producers didn't immediately feel the impact, however, as their country had little stocks to sell after a sustained drought led to record low production.

But since then, rains soaked Australia's east coast, and the country's growers are on course to produce 506,000 tonne of cotton - the highest since 2018 - leaving exporters scrambling to find alternative markets.

Australia will begin harvesting its 2020/21 crop in April, giving exporters several months to line up new customers.

Australia's relationship with China soured in 2018 when it became the first country to ban China's Huawei from its 5G network, and worsened this year when Australia called for an enquiry into the origins of the coronavirus.

As ties deteriorated, China imposed tariffs on Australian barley and slowed its imports of Australian beef and coal.