China’s Textile Industry International Competitive Advantage and Policy Suggestion

Yuan Tao, Xu Fu


The textile industry has long been a pillar 0f China’s economy thanks to its advantage in factor endowment and market scale. The trade volume of the textile sector has increased by 27.11 times during the past 25 years (from the Reform and Opening). In 2005, textile exports took up 15.4% of China’s total exports and 24.4% of the world’s total exports in textiles. The production and exports of Chinese textile products are the largest in the world.

Nonetheless, China’s textile industry is facing various difficulties, such as excessive resource reliance, low technology and value added, indisposition in trade structure and highly concentrated export markets. More and more trade sanctions against China’s textile products are particularly noteworthy as they cast tight restrictions on China’s competitive advantage in this industry. This paper aims at an in-depth investigation of competitive advantage of China’s textile industry and brings corresponding suggestions.


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