ANALYSIS OF CHINESE GARMENT EXPORT SECTOR

This paper analyzes the Chinese garment export sector. The Chinese garment industry has been an economic pillar ever since the open-door policy and economic reforms of the country took effect in 1979. Earnings from apparel exports have been a major source of foreign revenue. The industry has thus developed and played a vital role in the growth of China?s foreign trade and economic development although some signs of slackened vigour have been revealed recently. To assess the threats and opportunities China?s export clothing industry is facing, this paper identifies and analyzes the drivers of demand, key sources of advantage for exporting apparel manufacturers, and the strength of key industry forces. Based on this analysis, the paper offers several recommendations for Chinese exporting enterprises to enhance their competitive position against not only international competitors, but also domestic competitors. Specifically, these recommendations include increasing the added-value of the products, relocating the production base and exploring domestic and new markets.