Textile Trade In China Case Study

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1. China is one of the largest textiles producing and exporting countries in the world. Textile industry, as a labor-intensive industry with high foreign trade dependence degree, has made considerable contributions to China’s relatively stable employment and foreign exchange reserves. Correspondingly, due to keen demand, the U.S. needs to import magnanimous textiles. Therefore, enormous textile trade between China and U.S. seems logical. Nonetheless, because of some trade barriers like quotas, U.S’s textile import from China used to keep at a relatively lower level. 2. The WTO is an intergovernmental organization, which regulates international trades and oversees the implementation, administration and operation of the covered agreements. After…show more content…
With the development of economic globalization and trade liberalization, degree of openness has gradually become a momentous factor that affects countries’ economy. On account of “Protocol on the Accession of the People 's Republic of China” and the WTO’s principals, China’s degree of openness is expected to rise after entering into the WTO. (This argument helps explain thesis statement (b)) B. China has the largest population in the world. Therefore, due to textile industry’s labor-intensive property, it’s obvious that China has a comparative advantage at producing textiles. After China entering into the WTO and U.S. clearing lots of trade barriers between China and U.S, the quantities and value of textile exports from China to U.S. should show an increasing trend. Besides, China should always keep trade surplus in textile trade. C. However, the stagnation in 2008 and the slight decrease in 2009 shouldn’t be ignored. Almost simultaneously, great recession occurred in the U.S. and caused damage to U.S’s imports. This problem probably limited China’s exports, so I assume that great recession is the reason of stagnation and slight decrease. (This argument and argument B help explain thesis statement (c)) D. The WTO brought advanced technologies, which would boost process of specialization in China’s textile industry. (This argument help explain thesis statement
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