China Textile Industry Competitive Structure To Enhance Research

Textile industry is an important pillar traditional industry in national economy. Since reform and opening-up, the rapid development of textile industry has contributed a lot to expanding employment, guaranteeing foreign exchange reserves, and promoting the development of agriculture and other industries. Especially, the issuing of "The Textile Industry Restructuring and Revitalization Plan" by State Council in April 2009 demonstrates the importance of textile industry to national economic development and issues of the national economy and the people's livelihood. At the same time, the research of international competitiveness has become a focal issue concerned by the global community in the past three decades. Therefore, anglicizing and evaluating the competitiveness of textile industry, which is a globally competitive industry, has strong theoretical and practical significance.At present, due to the advantages of simple handling and worldwide comparing, scholars focus on the application of "import and export data method" to evaluate the industrial international competitiveness, however, the greatest shortage of this empirical analysis method is it can only evaluate the industry's market occupancy ability, but not for the product & operating efficiency of industrial development and profitability level, which are two key factors determining industrial competitiveness. In fact, it is that only use the "import and export data method" to evaluate the competitiveness of China's textile industry usually makes a same conclusion that its competitiveness is very strong; apparently the result is inaccurate and biased. In this paper, starting from the definition of industrial competitiveness, combining with "import and export data method", "productivity method" and "margin method", we construct a comprehensive analysis of industrial competitiveness evaluation framework from the perspectives of the industry's market occupancy ability, production & operation efficiency, and profitability level.After the empirical analysis on the international competitiveness of China's textile industry and its sectors, we found that its market occupancy ability is very strong, but its production & operation efficiency and profitability level are weak. Under the new background of oversupplying in the international textiles market, intensifying of anti-dumping and technical barriers to trade from foreign countries, steady increasing of domestic labor costs, and the appearance of "Rural Labor Shortage" in coastal areas, the extensive growth mode represented by steady enhancing of market occupancy ability has become increasingly unsustainable. This paper explains the status of Chinese textile industry's international competitiveness from the perspectives of factors input structure, industrial structure and ownership structure.From the perspective of factors input structure, the over-reliance on natural resources and cheap labor, and other primary factors leads to China's textile industry's staying in a low level of capacity expansion state, and enters into a contradiction predicament that its market occupancy ability is continuously climbing, but its profitability level doesn't improve obviously. Empirical analysis shows that ordinary labor is still the major contributing factor to decide the steadily rising of Chinese textile industry's market occupancy ability; however, the senior input factors represented by R & D and human capital don't dramatically affect Chinese textile industry's market occupancy ability, but they exert a strong right influence on Chinese textile industry's profitability level.It shows that the profitability of China's textile industry will be significantly enhanced by increasing R & D and human capital investment, and actively nurturing scarce factors and high factors.From the perspective of industry organization structure, small and medium enterprises are the main body of china's textile industry, and the industry concentration is very low. This kind of dispersive and atomic industry organization structure can't bring scale economy advantage into full play, which finally leads to the reversal in competitiveness of large, medium and small firms, namely that the market occupancy ability of medium and small firms is very strong, but weak in production & efficiency and profitability, and large firms have relative strong production & efficiency and profitability but weak in market occupancy ability. At the same time, through the correlation analysis between industry organization structure and industrial competitiveness by indexes of industry profitability, industry concentration and product differentiation, we found that the correlation is significant, and industry competitiveness (profitability level) is positively related to industry concentration and product differentiation, that is, the higher the degree of industrial concentration, the higher the degree of product differentiation, the stronger the industrial competitiveness, and vice versa.From the perspective of ownership structure, in recent years, the production & operating efficiency and profitability of state-owned enterprises significantly lag behind other types of enterprises, although its market occupancy ability is steadily decreasing, its export market share is still apparently too high, which is to some extent affects the improving of production & operating efficiency and profitability level. Meanwhile, the comparison among different ownership enterprises showed that the performance of foreign-funded enterprises is not satisfactory, although the export of foreign-funded enterprises accounted for the proportion of industry export up to 1 / 3, which means a strong market occupancy ability, its production & operating efficiency was lower than that of collective enterprises and private enterprises, and its profitability ability didn't obviously excel other types of enterprises. There is a big gap between reality and the expectation. The empirical analysis on the correlation between ownership structure and industrial competitiveness showed that FDI contributed much to increasing of Chinese textile industry's market occupancy ability, but contributed little to improving of its production & operating efficiency and profitability level. Therefore, generally speaking, FDI to some extent deteriorated current Chinese textile industry state, that is, it's strong in market occupancy ability, but weak in production & operating efficiency and profitability level.Therefore, to further enhance the international competitiveness of the textile industry, this paper bring forward strategic countermeasures from the aspects of sector structure, factor input structure, industry organization structure, and ownership structure. Firstly, based on analyzing the causes of difference in the performance among various sectors of textile industry, combined with the development of the sectors, we put forward strategic suggestions to enhance their competitiveness. Secondly, because of the low-level of factor input in textile industry, we advice to increase the capital accumulation, reduce low-grade duplication of investment, increase input in the industrial science and technology investment and human capital investment, and promote diversification of funding sources to establish a higher level of competitiveness. Again, from the perspective of industrial organization structure, we advice to increase industrial concentration, bring economies of scale advantages into full play; implement product differentiation strategies, and avoid vicious price competition; regulate entry and exit barriers, and perfect the market competition order. Finally, from the point of view of ownership structure, we advice to continue to promote the reform of state-owned textile enterprise, support the development of private enterprise; change the way of attracting FDI and improve the benefits of absorbing FDI.