The Study On Upgrade Of Chinese Textile Industry Through Direct Investments Abroad

The essence of the development of world textile industry is the global adjustment and upgrade of the industrial structure led by developed countries through the medium of multinational corporations. The successful streamlining of the industrial structure in one country can be realized through the utilization of both home and abroad markets, which means that the adjustment is no longer restrained within national boundaries but outside of the countries. The past experience has shown that direct investment abroad is an important way industrial upgrade and structural adjustment through the utilizing of foreign markets.In recent years, the economy of China has been growing very fast, and the economic achievements have received the worldwide attention. The problems have not been solved effectively of the overcapacity and slow upgrade of textile industry. In order to change China from a big quantity-intensive textile country into a strong quality-intensive textile one, and to upgrade the textile industry structure, both home and abroad markets and resources must be made full use of. From the industrial development stage and the technological situation and strengths of enterprises, some enterprises have met the requirements of direct investment abroad. Some textile enterprises that have invested overseas have achieved good result. The studies of direct investment abroad strategy are not only need of Chinese textile industry upgrade but also need of world textile industry structure adjustment.This article expounds the theories of the relationship between foreign direct investment and industry upgrade, in which the emphasis is placed on the relationship of textile industry, which includes significant and insignificant analysis. The evaluation index system of textile industry upgrade is constructed based on the systematic analysis of factors influencing textile industry upgrade. The successful experiences the direct investment abroad of the enterprises of USA and Japan are summarized and compared with the characteristics of Chinese textile investment overseas, and the mechanism and effectiveness to the upgrade of textile industry are explained Some problems and their causes are revealed in the process of the adjustment and upgrade of textile industry under in the context of global textile industry structural adjustment. Finally, the proposals of strategies are proposed of direct investment abroad of Chinese textile industry.