The Development Relations Of China And India Textile Trade Of After-Quota Era

Since the beginning of 2005, international textile trade organization cancelled quotas, global entered after-quota era. China and India as the world's two bigger textile countries, textile industry in the citizens of the two countries economic development plays a vital role in alleviating the pressure of employment, export aspects also made an important contribution. As the two great power countries in world, after-quota era is opportunity and challenge for China and India. According to the world trade organization in the global trade, China and India is the biggest beneficiary countries. China and India for textile trade is unavoidable competition, but there are many similarities, for example production factors and resources endowment and so on. Therefore, it has important significance for careful analysis between the two countries textile trade development present situation, the thorough research between the two countries of textile industry competitive and collaborative, for future development of the two countries textile industry. Through analyzing the Indian textile industry, it also has certain reference for our country future development situation of the development of textile industry.This paper firstly analyzes the China and India trade development status of their textiles. According to the historical status between China and India textile, we analysis the competition of the two countries for using the diamond model as the analysis tools.In India and China's textile trade competitive analysis, we study the textile trade of China and India using trade competitiveness index (TSC) of two countries textile trade.We analysis the competition and complementary of China and India adopting revealed comparative advantage indices (RCA). Through the above analysis, we forecast the relations between the two countries textile trade trend of future development,that is cooperation bigger than competition. Despite the relations between the two countries have certain competitive, but in some ways of cooperation, so both sides should strengthen the textile some areas of cooperation, and finally achieve the win-win goal. Finally, the paper gives some suggestions for the future development of China textile industry.