Research On Competitive Advantage Of Chinese Textile Industry

The ATC agreement was abolished from Jan 1, 2005. It means that the textile quota system is not applied any more, which had been applied for 43 years. therefore, International textile trade does not need quota any more. As a traditional industry, compared to the other countries' Textile Industry, Chinese Textile develops a great of advantage. So we can expect that our Textile industry will have a promising future, meanwhile, there are still more challenge and pressure in the future.This changing trade background brings us an important and urgent topic. That is: How to catch this opportunity? How to improve our advantage in Textile industry and expand our market in the world?By the methods of normative analysis and positive research, Theory of Comparative advantage & Theory of Competitive advantage in Chinese Textile Industry and application are studied deeply and systematically. On the base of advantage description, the author analyzes the reason and factors that affect the advantage and discusses how to improve the competitive advantage on the base of comparative advantage. Furthermore, the author gives some suggestion on improving advantage.The main points of this paper are as follows.Chapter 1 gives a description of the background of Chinese Textile Industry, study status at home and abroad, the importance of this industry.Chapter 2 studies the theoretical basis of Theory of comparative advantage and its evolvement. Meanwhile, The Theory of competitive advantage is also discussed in details. Further, the author compares these two theories and point out the connection and difference between these two theories.Chapter 3 focuses on the comparative advantage of Textile Industry in China. Such as: labor, nature resource etc, furthermore, the author reveals the problems in this industry. The comparative advantage in Chinese Textile industry is declining because of international competition.