Research Of The Impact That Financial Crisis Brings About On China's Textile And Garment Export

Beginning at August 2007, subprime mortgage crisis of the U.S. has gradually evolved into a worldwide financial crisis sweeping the globe, attracting the attention of the world, which is the worst economic crisis since 1929-1933. All the countries in the world has been badly affected. China is also one of the countries severely affected. In this paper,the impact on textile and apparel exports of our country are reseached. Since textile and apparel is labor-intensive products, and in this financial crisis, the affection on labor-intensive products by the financial crisis is the largest and most obvious, the impact labor-intensive products in the financial crisis is understood, the impact on other products or sectors of the financial crisis is also evident.The article uses detailed data to describe how the financial crisis to affect China's textile and apparel exports, and later on to search the reason hidden behind. First, the Factor Endowment Theory explains that Chinese textile exports affected by the financial crisis because the prices textile and apparel products in the financial crisis, prices are distorted. As our country depends on exports of textile and apparel too large, the domestic productions of textile and apparel are mainly sold by exports, which will increase China's textile and apparel exports affected by the financial crisis.The dependence on export of textile and garment is too large because it is caused by insufficient domestic demand. lack of own brand makes China's textile and apparel have a small profit margin and be at the cutting edge.In the background of the global financial crisis, the drop in external demand, trade protectionism and the pressure of RMB by the developed countries makes China's textile and apparel exports have to decline.Excavated under the impact of financial crisis, China's textile export factors, then are tested by the linear regression models. Test results prove satisfactory that impact factors of Chinese textile exports are correct. On this basis,it is highlighted how to stable China's textile and apparel exports. Urgent measures are export tax rebate and diversification of foreign trade. Export tax rebate makes textile and garment export business travel light, overcome the immediate difficulties. The implementation of trade diversification reduces the export of textile and garment export business risk, enhances textile and garment export companies to resist the risks caused by international factors like the financial crisis; Fundamental measure is to expand domestic demand, adjust technological transformation of export enterprises and improve the industrial structure, to reduce the export of textiles and clothing the risks of relying on exports, take the road of sustainable development; Auxiliary measure is going-out strategy. At this time of the world economic crisis, some Chinese textile and garment export business, if they are strong and brave enough to grasp golden opportunity in this turbulent autumn to cross-border mergers and acquisitions, access not only to advanced technology and equipment, foreign assets premium, but also local production of local sales, bypassing the foreign tariff barriers, a partial solution to China's textile and garment issue of excess capacity, increasing domestic employment, laying the foundation for transformation of export enterprises, upgrading the industrial structure and creating your own brand. Multi-pronged, the desired results will be certainly achieved.