The Research On The Trade Friction And Competition Ability Of China Textile Industry

In the first half year of 2006,China textile industry with scale has realized 1141.17billion yuan of Gross industry output value and 3.67 billion yuan profits,comparing to last year increased 23.70% and 35.99% respectively. However,with China textile industry's high speed development,the trade friction between China and other developed and some developing countries become more furious than ever. For example,in 2004 China have been prosecuted 16 cases from special safeguard measures and among them 15 cases concerned with textile industry. Facing serious international trade state,how to keep China textile industry's competition ability and get healthy and adequate development in the international and home markets is the content the paper will research.After introducing trade friction theory and the deep causation of trade friction happened in China Textile industry,the author proposed that trade friction is unavoidable; trade protectionism will exist for quite a long time. The only efficient way to deal with trade friction is to improve the competition ability of textile industry. At the background of some authoritative competition theory,the author selected 16 guidelines which can reflect textile industry'competition ability relatively rigorous from following aspects: market performance,competition ability,industry input and so on to have factor analysis. Results showed that R&D expense using rate,enterprise average scale and enterprise running cost have positive effect on competition ability and further approved above three guidelines'explanation ability toward competition ability through EVIEWS econometric instrument.Contrast to some literatures,the author through Granger Test which is one of econometric method proved R&D expense using rate and competition ability of China textile industry have reciprocal GRANGER relationships and statistic datas of textile industry during"the tenth five year plan"of China approved above relationship. Based on results of empirical analysis,author proposed an analysis frame composing by above factors. In the end of this paper,the author proposed some useful advices for relative departments and enterprises to make efficient decision.