An Analysis of Foreign and Domestic Situation of China's Textile Industry and Its Countermeasures

Currently China's textile products have met with fierce competition from other developing countries and colossal trade barriers from developed countries on the international market and at domestic the investment on textile industry is overheated re- sulting in over production capacity. It also faces price rise in raw materials, energy as well as labor cost. At the same time, the RMB appreciation trend together with the decrease of export tax rebate makes the situation of textile industry even worse. If it continues adopting the traditional export pattern then China is to lose its comparative advantage in textile industry. Therefore, it is best for China's textile industry to adopt FDI strategy to promote its international competitiveness and turn from a big country in textile industry to a powerful one.