International Trade of the Textile Industry

International Trade of the Textile Industry Abstract Since the reform and opening up, China's foreign trade is developing rapidly. However, China's international trade has encountered challenges, such as low self-competition, resource constraints, foreign anti-dumping and special protective investigation. This is the problem that needs to solve. This paper firstly introduces the textiles, and gives the introduction of this commodity. Secondly, the paper gives the international trade analysis of the textile industry, which contains the contemporary theory of international trade, the current trade pattern of textiles world-wide and characteristics of the contemporary international trade. And then the thesis shows the strategy to promote further development of the textile industry. 1 Introduction China is the biggest textile producing and exporting country in the world. Textile industry in the state of the economy has always has a very important position in China’s textile industry, and has remained high growth momentum. China is still the textile production and trade superpower in the world. Since the 1980s, China’s textile trade has been ranked in the top of all its international trade. This has become a very important source of foreign exchange earnings. January 1, 2005, the quotas were abolished. This is beneficial to further development of the international market to reduce the textile import restriction on China’s export. With the development of the industry, the global textile industry came into a new age. In this new age, the workforce has certain advantages, but in manufacturing technology, management and production costs are still at a disadvantage, with the world economic situation and the uncertainties of global textile trade pattern changes, quota-free era of China’s textile exports to the international market under the pressure of competition. Nowadays the Chinese export enterprises of textile face the new materials, the new rivals and the new opportunities of development, especially the long term low-priced competition. As a result of these reasons, China’s textile trade can not get a firm foothold in the international market. Although China is the biggest textile producing and exporting country in the world, it is not a strong textile trade country. How to combine the new materials, analyze the new rivals and catch the new opportunities of development is the most important issue related to the survival of the enterprises. How to meet the challenges and grasp the opportunity to further expand textile exports is an important and urgent issue that has a direct impact on China’s economic development and foreign exchange balance. This thesis takes one textile company for example and analyzes the position of the Chinese textile exporter in the industry and the pattern of the international development.