Analysis On International Competitiveness Of Chinese Tea Trade

We have a long history of tea production and tea-drinking habits in China. Tea culture is an important part of our national culture. As important agricultural special-products, tea makes contributions to raising peasants'income. The development of Chinese tea trade has important socio-economic significance. Chinese government uses it as an important means to develop rural economy and increase the income level of farmers. After joining the WTO, Chinese tea industry is facing great opportunities and challenges. In the international and domestic market, many problems in our tea industry appeared little by little and the international competitiveness is declining. How to improve the international competitiveness of our tea industry is worthy thinking.In this paper, the Michael ? Porter's Diamond Model is the theoretical basis. This paper summarizes the current situation of Chinese tea trade, characteristics and problems. It focuses on the impaction made by factors of the Diamond Model on the international competitiveness of Chinese tea trade. By learning advanced management experience, this paper tries to put forward some suggestions to increase the international competitiveness of Chinese tea trade. This paper is divided into six chapters.The first chapter is the introduction section. First, tea trade has some positive effects. There are shortcomings and deficiencies in tea industry. It describes the purpose and the meaning of the international competitiveness of the tea trade. Second, by reading a large number of documents, it introduces the research results of scholars. Third, it introduces the research framework, the main content, the innovation and the shortage.The second chapter describes the theory of international competitiveness. First, it describes the meaning of the international competitiveness. The definition of the international competitiveness is that in a free and fair market conditions, one country provides the necessary products and service to the international market. And it has the ability to maintain and enhance long-term real income of its people. Second, it describes international competitive advantage and introduces Porter's Diamond Model. The Diamond Model is composed by four factors. They are factors of production, demand conditions, related industries and corporate strategies. It also has governments and opportunities.The third chapter describes the status quo of Chinese tea trade. First, it describes the development of the international tea trade. The international tea trade mainly represents in five areas. Firstly, black tea accounts for the main part. Secondly, tea producing countries buy more tea than before. Thirdly, there is excessive supply in tea market. Fourthly, more and more people buy tea bags and instant tea. Fifthly, tea auction is welcomed by tea enterprises. And the places of tea auction are diversified.Second, it introduces the status quo, features and problems of Chinese tea trade. Let us look at Chinese import and export of tea. The number of Chinese tea export is growing, but it's not enough. We imports more tea, especially famous black tea. And we will import more. There are many problems in Chinese tea trade, such as pattern of small-scale business, low-tech, quality and safety etc.The fourth chapter analyzes the international competitiveness of Chinese tea trade by using the Diamond Model. This part is analyzed by six factors that are factors of production, demand conditions, related industries, corporate strategies, governments and opportunities. We have some advantages in the factors of production. From the perspective of demand, the demand of tea in domestic market is insufficient. Chinese green tea has advantages in international market. But black tea is in the opposite. Our machine tool manufacturers, the industry of fertilizer, pesticide and biological products and packing do not have advantages. They affect our tea trade. Government guides our tea enterprises. It makes these enterprises lack of independent development. And after joining the WTO, Chinese tea industry is facing great opportunities and challenges.The fifth chapter gives us some suggestions in order to improve the international competitiveness of Chinese tea trade. There are six suggestions here. First, we must deepen and improve organizational systems and the structure of tea industry. Second, we should absorb science and technology, enhance the technological content of tea. Third, we need improve the hygienic quality of tea, and respond to technical barriers actively. Fourth, we can give full play to the role of the government to develop tea industry. Fifth, we should use the policies of the WTO rationally. Sixth, we can build brand awareness by using our cultural advantages.The sixth is the conclusions. Overall, Chinese tea trade has international competitiveness and great potential. But the international competitiveness is declining now. Tea trade is important for our country. So we should take measures to develop tea trade actively.