Study on the International Competitiveness of China’s Industry of Textile Clothing: Based on Diamond Model and RCA Index

Under the background of economic globalization, enhancing the international competitiveness has become the core of industry development. Textile clothing is one of the predominant traditional industries in China, while it has endured more fierce pressure in recent years. Based on Professor Porter’s Diamond Model theory, this paper analyzes the present conditions and problems from four aspects: factor endowment, domestic demand, relevant industries and enterprises’ strategy, structures and competitiveness. Meanwhile, it compares the competitive capability of China, India, Italy and other countries by calculating the Revealed Comparative Advantage (RCA) Index. In the end, four countermeasures and suggestions for the competitiveness promotion of China’s industry of textile clothing are accordingly proposed.