Global Cotton and Textile Product Chains
Summary
This report analyzes the environmental and social impacts of China's role as a leading producer, importer, and exporter in the global cotton and textile supply chain. It examines the trade-offs between economic growth and environmental degradation, proposing a transition toward sustainable production practices and a strategic shift in sourcing toward rain-fed regions in Africa to reduce global environmental pressure.
Key insights
- Cotton production has severe environmental impacts due to high reliance on water and chemicals, with the crop accounting for approximately one third of global pesticide use.
- China's domestic cotton production is characterized by small-scale, labour-intensive farming that faces sustainability challenges, including land degradation and high water consumption, particularly in dry and semi-arid regions north of the Yangtze River.
- The textile printing and dyeing industry in China is a major source of pollution, with waste water discharge ranking fifth among all Chinese industries, totaling 1.413 billion tonnes in 2003 with a recycling rate of less than 10%.
- The report identifies a significant opportunity to reduce carbon emissions and energy use by utilizing cotton by-products; specifically, transforming China's annual output of cotton stalks into energy could save 13.7 million tonnes of standard coal.
- Sourcing cotton from West Africa offers substantial sustainability benefits because production is primarily rain-fed, reducing the need for irrigation and chemical inputs compared to intensive production in the U.S., Australia, or Central Asia.
- The report projects that China's comparative advantage in the textile sector may diminish due to rising labour costs, the internalization of environmental costs, and competition from other developing countries like Vietnam.
- Internalizing environmental costs (e.g., through pollution taxes and discharge fees) is expected to increase product costs by approximately 2%, which may reduce export volumes by 2% but will drive technological upgrades and a shift toward higher-value products.
- The report recommends that China develop a National Market Growth Strategy for Sustainable Cotton, including the creation of a national information strategy and participation in the Better Cotton Initiative (BCI) to establish international standards.
- To improve global sustainability, the report suggests China eliminate duties on African cotton imports and invest in African agricultural technology to increase yields and quality.
Cite the original document
- APA
- Pan, J., Chu, C., Zhao, X., Cui, Y., & Voituriez, T. (2008). Global Cotton and Textile Product Chains. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/china_sd_cotton.pdf
- Chicago
- Pan, Jiahua, Chengshan Chu, Xinghu Zhao, Yuqing Cui, and Tancrède Voituriez. Global Cotton and Textile Product Chains. International Institute for Sustainable Development, 2008. https://www.iisd.org/system/files/publications/china_sd_cotton.pdf.
- Wikipedia
- {{cite report |last1=Pan |first1=Jiahua |last2=Chu |first2=Chengshan |last3=Zhao |first3=Xinghu |last4=Cui |first4=Yuqing |last5=Voituriez |first5=Tancrède |title=Global Cotton and Textile Product Chains |publisher=International Institute for Sustainable Development |date=October 2008 |url=https://www.iisd.org/system/files/publications/china_sd_cotton.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{pan2008global, author = {Pan, Jiahua and Chu, Chengshan and Zhao, Xinghu and Cui, Yuqing and Voituriez, Tancrède}, title = {{Global Cotton and Textile Product Chains}}, institution = {International Institute for Sustainable Development}, year = {2008}, month = oct, url = {https://www.iisd.org/system/files/publications/china_sd_cotton.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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