A Research On Development Strategy Of Chinese Textile Trade

Textile industry is one of pillar industries in China with traditional advantage. Thanksto the abundant natural resources and cheap labor, the price of textile product made inChina is quite competitive in the international market. However, Chinese textile product isof small added value, no high quality and lack of high technology , so it is losing itscompetitive advantage. It is quite hard to keep its global competitiveness only relying onprice advantage. Therefore, the essay aims to research on the establishment of competitiveadvantage of nations in Chinese textile industry. The essay begins with the important rolethat the textile industry plays in Chinese economy, then analyzes the status quo of Chinesetextile industry by means of "diamond theory" based on Porter's competitive advantagetheory;and finally finds out the causes and gives its countermeasures. The conclusion ofthe essay is that the development strategy of Chinese textile trade is to establishcompetitive advantage of nations in Chinese textile industry.