Analyzing The Causes Of Sino-US Textile And Apparel Trade Disputes And China's Strategy

With the rapid development of Sino-US textile and apparel trade, bilateral trade expands gradually and trade deficit between China and the US has been growing as well. Especially after the termination of the Agreement on Textile and Apparel in 2005, Chinese textile and apparel exports have increased very quickly just because the quota has been canceled, which challenges the relationship between two nations. Textile and apparel trade issues become more and more sensitive and the trade relationship between two nations also becomes more and more complex. Although the two countries sign a memorandum of understanding on trade in textile and apparel on November 8^th in 2005 which helped to suspend the trade, trade disputes will never end. So summarizing the historical experience of Sino-US textile and apparel trade, seeking the causes for the growing trade disputes, prognosticating the trade conflicts which may break out in the future and finding out the countermeasures to solve them become the emphases to study Sino-US textile and apparel trade. It is also the crux to ensure that the relationship between two countries will go on harmoniously and steadily.First, the thesis reviews the history of trade liberalization on textile and apparel under the international trade regime. And then by analyzing Sino-US textile and apparel market, the history of the textile and apparel trade between two countries, the paper makes it clear that the development of Sino-US textile and apparel trade marches on among conflicts and disputes and trade dispute is the main feature of Sino-US textile and apparel trade.Then the thesis analyzes the true causes of the textile and apparel trade disputes between two nations and the rules that the US used to restrict Chinese textiles and apparels. It also illuminates by theories that Sino-US textile and apparel trade is an inevitable result of rational international division. Trade restriction from the US to China will hurt not only the development of Chinese foreign trade but also the recovery and increase of the US economy. So it is an unwise choice to the society and the economy of two nations. At last, the thesis proposes reasonable strategies on solving the bilateral trade disputes of textile and apparel.The thesis has 4 chapters:Chapter 1 elaborates the basic principles about the textile and apparel trade liberalization under the international trade regime. It introduces the basic advancement of the international textile and apparel trade liberalization, the contents of the correlative agreements and their contribution to the international textile and apparel trade liberalization. First it introduces the conclusion process and the outline of MFA. MFA was concluded when the textile industry in developed countries was deeply imposed by developing countries. The main purpose of it was to maintain the trade order and to realize the trade liberalization gradually, but in fact it baffled the process of trade liberalization by quota. Then the paper analyzes the background and the main contents of ATC. ATC plays an important role in the international textile and apparel trade liberalization but it also has its limits. Based on these, the paper analyzes the deep influence which ATC bring to textile and apparel trade.Chapter 2 elaborates the textile and apparel markets in two nations in detail by analyzing the international competitive advantages of the textile and apparel industry between China and the US. First it compares the Revealed Comparative Advantage of two nations and analyzes the competitive advantages of China and the US in international market. And then it points out the main problems faced by the Chinese textile and apparel market by analyzing the volume and the way of trade. At last it reveals that there are still many kinds of trade barriers as the US textile and apparel market competition becomes more and more furious.Chapter 3 analyzes the main causes of trade disputes happened in Sino-US textile and apparel trade emphatically. Firstly it reviews the history of Sino-US textile and apparel trade. And it also summarizes the complementation and bifurcations of bilateral trade based on analyzing the changes of the Sino-US textile and apparel trade. Secondly it validates that the bilateral trade is good to both countries by theories. At the same time it discovers the rootstocks of trade conflicts between two countries from the following four aspects: politics, economy, the international environments and the domestic environments. Thirdly it prognosticates that the US quota may impose Chinese textile and apparel exports greatly.Chapter 4 recommends effective strategies to both our government and textile enterprises, which should help to solve the problems existing in Sino-US textile and apparel trade according to the analysis on the causes of the trade disputes. The author hopes that healthy development of Sino-US textile and apparel trade may bring much more impetus to Chinese economy.