China’s cotton planted area and production are both forecast to decrease in MY18/19 as a moderate acreage expansion in Xinjiang is more than offset by a sharp fall in planting area in other regions. This was due to low profits in MY17/18. Bolstered by growing domestic demand for textiles and apparel, as well as stable exports, cotton use will continue to increase in MY18/19, reaching 9 million metric tons (MMT). The narrowing gap between domestic and global cotton prices contributes to spin consumption growth but also restricts yarn import growth. Balancing ongoing reductions of the state cotton reserve with an additional 0.8 MMT of cotton import quotas, China’s cotton imports are expected to recover to 1.52 MMT in MY18/19.