Analysis On Economic Effects Of Sino-US Textile Trade Friction

Throughout the 30-years developing course of Sino-US trade, both in the quota period and the post-quota period, the development of Sino-US textile trade is not all plain sailing, and sometimes it even was plagued with setbacks. Especially in 2005 with the abolition of textiles quota system, the Sino-US textile trade friction is growing more and more, seriously hampered the normal development of Sino-US textile trade, and become a key issue in china's export trade. At home and abroad there are many researches on the causes of Sino-US textile trade friction, but few scholars have analyzed and summarized systematically the economic effects of it. Therefore, it has both theoretical value and practical significance for us to do systematic research and give suggestions on this issue.Based on the review and comment on the foreign and domestic related literature, the paper firstly analyzes the status of Sino-US textile trade friction from four viewpoints: the huge trade surplus, market share, the terms of trade and the trade structure. Until 2006, both the textile trade surplus and market share continue to expand, and the irrational trade structure remains. But the price of textile is gradually rising. Then the paper analyzes the economic effects of Sino-US textile trade friction theoretically: macro-economic effects, meso-economic effects and micro-economic effects. The analysis shows that Sino-US textile trade friction brings both negative effects, concluding impeding economic growth, creating employment pressure, reducing the textile export trade and so on; and positive effects, concluding: promoting the development of the textile export market diversification, accelerating the pace of the industrial restructuring, promoting technological progress, improving product quality and etc. Next, the paper empirically analyzes the effects of Sino-US textile trade friction on China's economic growth, textile export trade and textile enterprises' profits. The results show that Sino-US textile trade friction has a negative correlation with China's GDP and total exports of textiles, but a positive correlation with the textile enterprises profits. On the basis of the above study, the paper finally gives corresponding countermeasures and suggestions from the viewpoint of the government, the industry associations and textile enterprises. This article believes that, to resolve this problem, the government should create a favorable external conditions for textile enterprises, and the textile industry associations should play well as a link tie between the government and the enterprises, and textile enterprises should improve product quality, implement market diversification strategy and so on. The key is that the Government, industry associations and textile enterprises do efforts together and coordinate closely to promote Sino-US textile trade long-term development.