Abstract: In 1992-1998, mean unit yield ratios of food grain to lint cotton and cotton-growing profits relative to other agricultural activities ranged from 1.94 to 7.24 and from 0.95 to 5.41 in 12 major cotton-producing provinces, respectively. By statistical analysis, every 1 increase in the ratio will probably cause a 34.0% decrease and 48.3% increase in the ratio of cotton yield in 1999 to that in 1992, respectively. Based on this analysis of comparative advantages in the 12 provinces, under the nation-wide condition of reducing cotton production, it is reasonable to maintain the production levels in Gansu and Xinjiang, reduce the production to rational levels in 5 provinces of Jiangsu, Zhejiang, Shandong, Hebei and Sichuan, and adjust properly the production levels in the other 5 provinces of Jiangxi, Anhui, Henan, Hunan and Hubei. Considering the change in international market in the near future, the authors believe that cotton yield in Xinjiang and Gansu will further increase, and keeps the pace with the national production in 2001.