Economic Research Report No. (ERR-307) 50 pp August 2022 Chinese Cotton: Textiles, Imports, and Xinjiang by Fred Gale and Eric Davis China is the world’s largest textile manufacturer and cotton consumer, but changes in China’s economy are reshaping the geography of its cotton-textile sector. Nearly all of China’s cotton is produced in the country’s Xinjiang Region, while textile manufacturers, the main consumers of cotton, are concentrated in coastal and central regions where cotton production has fallen dramatically. These geographic changes are a factor influencing global trade in cotton and textiles. While China’s imports of cotton are projected to gradually increase over the next decade, China’s dominant position in the cotton market appears to be weakening, with U.S. cotton exports shifting to other Asian countries.