Competition And Cooperation In Textile Products Trade Between China And India

Regardless of speaking of China or India, the textile profession is acting the important role in its national economy,and it is a Chinese and Indian big traditional superiority industry. To both countries, textile profession has the quite vital significance in earning foreign exchange through export, the domestic employment and social stability and other aspects. However, along with after quota oncoming, China and India's textile industry all faces the brand-new international environment. As the biggest world textile clothing market, US and Europe had recommended the non-tariff barrier after the quota time. Although at present China is the attack object and India may have victory fall into one's lap, India domestic scholars already gave the warning to the Indian spinning and weaving profession that along with rationalization of Chinese textile clothing exportation and Indian further expansion of exportation to US and Europe, the American and European next attack object was very possibly India.Therefore, China and India in fact are facing the similar stern challenge; On the other hand, part of developing nations also are mainly the textile the export states,like Vietnam,Pakistan,South Africa and so on,and they have very misunderstanding and the guard psychology to the China and India, because the textile is emphasis of the export commodity to these countries. But they thought China and India seized their quota belonged to them originally at zero quota time, which affected its domestic exportation seriously. Therefore China and India face the new challenge from these developing nations.At present, an important issue faced by China and India textile industry is what course shall be followed. As the world spinning and weaving great nations, China and India have their own superiority in textile resources, manpower, product, technology and so on. Through fully strengthening the foundation of understanding between two sides, and launching cooperation, both sides are to make up for one's deficiency by learning from others' strong points, promoting the comprehensive strength and the international competitive power of textile profession, which may increase the China and India textile industry negotiations chip in the foreign trade, slow down huge international pressure that both countries textile industries withstand at present, simultaneously impel to speed up the establishment of fair world textile clothing market, fundamentally eliminate the non-tariff barrier which both countries textile clothing exportation faces.Chinese and India's textile profession is at the same development phase and the level, and textile exportation structure of both countries is similar. Thus bilateral trade relations is of competitiveness primarily. By comparison of the China and India textile industry and analysis of Chinese and the Indian textile trade international competitive power using the net import competitive power, dominant comparison superiority index (RCA), and the similar exportation index, result had indicated that both countries had certain competitiveness in the majority of textile production and the exportation. But as a result of difference in the resources talent aspect, both countries have the complementarity in the partial textile production, which has also provided certain objective foundation for the China and India textile trade cooperation. Therefore, in this paper, present situation of the textile bilateral trade and Chinese and India's textile trade cooperation potential using the trade complementarity index are analyzed. The result showed China and India have complementarity on the textile raw material class product, specially the silk, the cotton. Based on Chinese and India's special details, the China and India textile trade cooperation strategy and the prospects are discussed finally in this paper. Because of Chinese and Indian superiority concerning the economy respectively and characteristic of textile complementarity, as well as the market resources potential, there will be the huge development space in textile industry cooperation between both countries in future.In this paper, thinking mode from the superficial phenomenon has been abandoned; competition between China and India is considered seriously rather than exaggerated. From the point of root of the competition, essential reason behind phenomenon is revealed to analyze competition phenomenon more objectively. Based on the China and India textile clothing trade cooperation question research, possibility and the feasibility of cooperation is analyzed in detail. There is no achievement in the related field. Major characteristic feature of the paper is that corporation lies in the frame of competition, focusing on the objectivity and reality.