China's Textile Industry Competitive Advantage

Our country is a leading power in textile industry, which not only is a traditional industry but a principal one in national economy. China since 1994 has become the country producing and exporting the biggest amount of textile and garment, whose export accounts for 1/7 of that of the world total, and 1/4 of export of our country. Comparative advantage of our textile industry is becoming less and less with textile technique advancing and dramatic competition of other countries. Therefore, competitive advantage appears more important.The thesis is raised under this background.Above all, the paper not only defines advantage and explains absolute advantage, comparative advantage , competitive advantage and the development of the advantage theory but also summarizes the current situation of textile industry both at home and the world as well. It laid foundation upon the analysis of competitive advantage of textile industry. The author then analyzes the competitive advantage of China's textile industry form three aspects: firstly, the author thinks the synthetic competitive ability of textile industry is weaker. This fact has an effect on the international competitive ability by means of using factor analysis between textile industry and the others; secondly, the author puts realized index and AHP into use on the basis of M. E. Porter theory and China's specific condition, and comes to a conclusion that the trend of China's textile international competitive advantage is coming down; thirdly, the author thinks the industrial environment can not be ignored, though the industry itself is equally important. In view of the above, the paper adopts the industrial cluster analysis, which can demonstrate that our textile industry has not yet won the capability of maintaining the long-term competitive advantage. Finally, the paper in the summarization puts forward into some suggestions about the industrial competitive advantage.