A Study Of Impact Of TPP On Chinese Textile And Apparel Industry

With the continuous development of regional trade negotiations, TPP as a FTA which covers 40 percent of global trade,will have a profound impact on Chinese trade both from the perspective of the regional economy and global trade.The negotiations of TPP have completed on October 5,2015.TPP is likely to promote a new round of the Asia-Pacific integration process under the leadership of the United States. However,due to a variety of political,economic and diplomatic factors,China has been excluded from the TPP negotiations.Textile and clothing negotiation is an important part of the TPP negotiations.Tariffs on textiles and clothing products are high, and the negotiations are complex because of the special trade rules and industrial property and historical system of TPP countries.China is a major textile and clothing exporting country in the world,accounting for about one-third share of the total global textile and garment exportation.According to WTO statistics, from 2011 to 2013, the global textile and garment exports were 711.8 billion dollars,706.6 billion dollars and 766.1 billion dollars, and the proportions of Chinese textile and garment exports accounting for global textile and garment exportation of the three years are 34.82 percent,36 percent and 37.07 percent. With the expansion of TPP, trade regulations of TPP on textile and apparel may change current textile and garment trade pattern in the Asia Pacific region, and trade diversion effect will inevitably have a profound impact on Chinese textile and garment trade patterns. Therefore,studying on the development of Chinese textile and apparel trade with TPP countries and proposing specific improvements are significant for improving international competitiveness of textile, reducing negative impact on Chinese textile and garment industry and significant for the textile and apparel enterprises to adapt to the changes of exportation environment after TPP taking effect.The author analyzes the development status of Chinese textile and garment trade through data survey and statistical description methods and analyzes the impact of TPP on Chinese textile and apparel trade,investment,technology and participation of Asian vertical division of labor pattern.Impact of TPP on textile and apparel trade is the emphasis.Specifically, the paper is divided into five chapters to discuss.Chapter one introduces the research background and significance of the article,study of domestic and abroad, research methods and the innovation and deficiency of the thesis. Chapter two introduces textile and apparel trade situation of China with TPP principal members and analyzes the level of textile and apparel competitiveness of China,United States, Japan and Vietnam using revealed comparative advantage index, trade competitiveness index and trade complex index.Chapter three is the theory analysis part, using static effect and dynamic effect of the theory of customs union to analyze the impact of TPP on Chinese textile and garment industry.Chapter four analyzes the effect of TPP on China’s textile and apparel industry in trade,investment and participation in the Asian vertical division of labor.The article analyzes the effect on trade using GTAP model to have a empirical analysis.Chapter five provides policy recommendations on the negative impact of TPP on Chinese textile and apparel industry.The conclusion of the study is mutual exemption of importation duties of TPP member countries will have a negative impact on Chinese macro economy and because of trade diversion effect,Chinese textile and apparel exportation to TPP member countries will decline after TPP taking effect.Meanwhile,TPP member countries will promote textile and apparel importation and exportation growth of each other and decline in Chinese textile and apparel exportation will lead China to a narrower market share in all regions.Therefore, China should pay attention to the adverse effects of TPP may bring to Chinese textile and apparel industry,optimize textile and apparel export market structure,expand domestic demand, and strive to improve the technological level of the textile and apparel industry, promote industrial upgrading and finally change economic development mode, improve the international competitiveness of Chinese textile and garment industry fundamentally.