The Research On The International Competitiveness Influence Factors Of China's Textile Industry

China is one of the biggest textile producing and exporting countries in the world. The textile industry is one of the industries which have both comparative and competitive advantage in China. In 2008, the financial crisis broke out, which imposed negative effects on the textile industry. The amount of textile exports fell dramatically and many companies suffer a loss, some of which even went into bankruptcy. After that, the economy recovered gradually, while the advantage of labor cost in textile industry continued to be weakened. In these circumstances, it is imperative to explore whether the international competitiveness has changed, what are the main effects influencing it and how to maintain its lasting and unique competitiveness.Throughout the academic research, international competitiveness of the textile industry emerged in an endless stream, but most of them focused on analyzing the current situation and concluding some policies and proposals while neglected the empirical study on the factors influencing the competitiveness of China's textile industry so that the policies proposed are not specific and narrowly targeted enough. In this situation, this paper conducted both theoretical and empirical research on both quality and quantity basis. Besides the research on the new status on international competitiveness of the textile industry, in-depth analysis on the textile industry internationally competitive factors are also included on empirical basis, in order to provide a theoretical basis on how to improve the competitiveness of the textile industry effectively.This paper examines the competitiveness of China's textile industry and the factors which impose significant effect on it. This dissertation starts study along the following lines:The paper is divided into six sections. The first section induces the issue to be analyzed, and gives a brief introduction on the frame of the paper and means adopted in the paper. In the following section, some theories related to international competitiveness are presented. In this part, the author'defined the international competitiveness based on a review of authorities'in the field definition and explained the main source of international competitiveness. Section 3 illustrated the current situation of international competitiveness of China's textile industry. The situation of the textile export was introduced; the textile export competition situation is illustrated by calculating some indicators related to textile import and export and comparing the indicators of the 15 countries which are the most competitive textile exporting countries in the world. PCA is also applied to see the rank of China in international competition. The next section built the international competitiveness of Chinese textile industry factor model based on Michael Porter's "Diamond Model" to indicate some of the factors which have crucial effects on China's textile industry competitiveness. The result shows that the international competitiveness of Chinese textile industry is closely related with the average remuneration, the average distance freight transport, R&D research funding, industry labor productivity and credit amount.However, due to the effect of uneven distribution of income on consumption structure, domestic demand and export competitiveness of the textile industry is not closely related.The following chapter proposed the suggestion to promote the international competitiveness of China's textile industry. The last section makes a summary of the whole paper and points out some defects of it.