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China

During the past two decades and more, China’ s output of jute and kenaf ranked third in the world, with India and Bangladesh producing more. In normal years, jute and kenaf produced in China has been mainly for supply to domestic mills with a small part for export. Although China has imported some jute and kenaf, it has generally been a net exporter with exports exceeding imports.
According to Customs Statistics (see Table 3), during the 10 years from

1985 to 1994 the cumulative quantity of jute and kenaf imported was less than 20 000 tonnes while exports approached 300 000 tonnes. China’ s level of exports was second only to Bangladesh. After 1995, however, the situation became reversed with jute and kenaf imports surpassing exports. In 1996, China exported 3 100 tonnes of jute and kenaf, while importing 21 000 tonnes. In 1997, exports were 899 tonnes and imports rose to 165,800 tonnes thereby accounting for about half of China’ s domestic demand for jute and kenaf and nearly half of the world’s trade volume in that year. This increased level of imports not only affected domestic jute and kenaf production but also had a major impact on world trade in jute and kenaf, boosting the international price. The increased level of imports of jute and kenaf in 1997 was due to the following factors:

According to Customs Statistics (see Table 3), during the 10 years from 1985 to 1994 the cumulative quantity of jute and kenaf imported was less than 20 000 tonnes while exports approached 300 000 tonnes. China’ s level of exports was second only to Bangladesh. After 1995, however, the situation became reversed with jute and kenaf imports surpassing exports. In 1996, China exported 3 100 tonnes of jute and kenaf, while importing 21 000 tonnes. In 1997, exports were 899 tonnes and imports rose to 165,800 tonnes thereby accounting for about half of China’ s domestic demand for jute and kenaf and nearly half of the world’s trade volume in that year. This increased level of imports not only affected domestic jute and kenaf production but also had a major impact on world trade in jute and kenaf, boosting the international price. The increased level of imports of jute and kenaf in 1997 was due to the following factors:

Firstly, the Chinese government instituted a new policy for transporting large amounts of grain in storage in the three northeast provinces (Jilin, Liaoning and Heilongjiang) to ease the pressure on grain depots there to south China provinces for grain consumption. This led to higher demand for gunny bags and hence for jute and kenaf as the raw material. Demand for jute and kenaf increased rapidly in a short period and this demand could only be met by imports.
  Secondly, quality of jute and kenaf produced in Bangladesh is better than Chinese jute and kenaf as the former is more refined in yarn count, higher in strength and tenacity for twisting, contains less impure material therefore permitting a higher rate of utilization in making gunny bags, and is available at a lower price. Many Chinese textile mills then preferred imported to local jute and kenaf.

Imports decreased to 102 000 tonnes in 1998, but even this amount remained the second highest on record and China exported less than 1 000 tonnes of jute and kenaf in that year.

(Source of Data: Statistics of Chinese Custom Office)

(b) Products
   China’ s imports and exports of jute and kenaf products have been declining in recent years and it is believed that this trend may continue in the next few years. This article will not go into detail in this aspect. Table 4 shows China’ s imports and exports of jute and kenaf products in recent years:

Table 4 - Imports and Exports of Jute and Kenaf Products

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