China continues to be both the world's largest wool processor and exporter of wool top with substantial rise in wool top exports to Europe and also other geographic regions where domestic suppliers have been in long term decline.

It was expected that in 2007, Chinese imports of raw wool from Australia might decline, due to high utilisation of import quota and environmental problems, however, China's imports of raw wool rose in 2007 to the highest level of imports on record, exceeding the most recent high of 2001.

The rise in imports of raw wool and wool top was mainly due to a strong demand of scoured wool and a more modest rise in imports of greasy wool. Greasy wool accounted for over 3/4 of China's raw wool and top imports in 2007.