Studies On Trade Strategy Of Chinese Textile Industry In The Post-ATC Era

To start with, this paper in depth studies the historic background and the main clauses and terms of , and also the great influences it brought to the development of the international textiles trade and industries. Secondly, this paper analyzes the environmental changes of the international textiles trade, the developing trend of the industry in China, the reasons for the frequent trade conflicts towards Chinese textiles export and the international competitive edge of Chinese textiles industry after the expiration of ATC in January 2005. Finally, based on the other countries'experiences in their strategic adjustment of textile industries, and the anticipation of the development of Chinese textile trade in the future, this paper gives its relative measures on how to further improve the domestic industry and promote Chinese textiles trade and in the post-ATC era.After the World War II, in order to protect the domestic textile industries from the impacts of import, the developed countries adopted several strict restrictive measures to textile importation from the developing countries. These measures included the international bilateral and multilateral agreements such as , < The Long-term Fiber Agreement > ,and .After the unswerving efforts of developing countries, ATC was successfully signed in December 1993, which required to cancel all the textile and clothing quote in a 10-year transitional period. The fulfillment of the ATC could take the textile and clothing trade into the domination of the WTO, and also pave the way to the trade liberalization. In the post-ATC era, the international textile trade has already formed the pattern in which the developing countries export and the developed countries import in an ever increasing overall trade volume. And the national competitive edge gradually take the place of quote and becomes the bases for the present and future international market shares. Some traditional trade barriers in textile trade such as safeguard, anti-dumping, and TBTs are still in intensive use. With the severer competition among the developing countries, the trade conflicts frequently broke out.There are three consuming markets, three producing centers, and three trade circles existing in the present worldwide textile trade pattern. Respectively, the three consuming markets are the European market with the EU as its center, the North American market with the US and Canada as its center, and the East Asian market with Japan as its center. The three producing centers are Turkey,Mid and East Europe and the countries in Northern Africa, Mexico,Latin American countries, and China,India,Pakistan and East Asian countries. With the high technology, advanced equipment, and the excellent design, the developed countries mainly design and produce the high-grade textile and costume products. By contrast, the developing countries have disadvantages in these three aspects, and their major advantages are the low labor cost.China has become the largest textile and costume producing country in the world. Some important events such as the accession to the WTO, and the expiration the ATC all bring some very significant opportunities to Chinese textile industry, in such circumstances, china's textile and clothing industry have achieved the rapid growth and import of textile and clothing has became the biggest trade surplus resource and the largest absorber of labor forces, Chinese textile and costume export rest in the strategic status of great significance. However, this important industry also meets with considerable trade conflicts when growing rapidly, which bring forth serious damages to our domestic industry. Recently, the figure of the conflicts and the value involved are also increasing fast. And some developing countries also begin to sue against China. The major competitive edges of our domestic textile industry are the comparatively abundant labor forces and resources supply , rapidly growing internal demand, and the fairly complete industrial chains. However, many shortcomings still exist, such as the lack of innovation in produce and technology, out-of-date equipment of the overall industry, and the deficient organizing system and competition strategy of the enterprises.In order to adjust to the new trade environment in the post-ATC era, and efficiently participate in the world competition, the main textile producing countries all made some necessary changes to their development strategies of their domestic industries. Based on the studies and analyses on the adjustment of the main producing countries, the writer finally gives out his suggestion in this paper. On the governmental level, the government should increase the support of technological innovation in the textile and costume industry and promote the rationalization of the industry. The government also need to improve the negotiation and conciliation with the other developing countries. Besides, the government should attach great importance to the construction of the authentication system, and make out the relative standards accepted internationally. The government still needs to enhance the domestic legislation on labor standards so that improve the international surrounding. On the industrial level, the complete trade conflict alarming system should be constructed. And the minimal pricing and self-controlling measures of some sensitive commodities should be adopted. On the level of enterprise, they should rationally analyze the trade environment, increase the expenditure in R&D and the added value of technology in the product's price. Meanwhile, the enterprises also should actively apply for the authentication and ecological labels. Finally, they still need to emphasize the development of their original brands.